A major shift is happening in Bitcoin right now. It’s gone from a risky side bet to serious institutional infrastructure. Anthony Pompliano’s point about Bitcoin becoming ‘less risky as it grows’ sounds backwards, but it’s actually spot on.
When Bitcoin was smaller, it could have been killed by a single government ban or major exchange hack. Now, with Bitcoin up more than 18% this year and hitting $111,988, it’s simply too big and too embedded in the financial system to disappear overnight.
The biggest piece of the pie is institutional access. At a $100-200 billion market cap, Bitcoin was still too wild and unregulated for pension funds, insurance companies and sovereign wealth funds. These institutions manage trillions in assets but need regulatory approval, proper storage solutions and less crazy price swings to get involved. Bitcoin’s growth to trillion dollar status has forced the creation of exactly this kind of infrastructure.
Trump’s crypto friendly policies are speeding this up big time. When the president’s own media company is launching a crypto ETF, it’s a clear sign that digital assets have moved from the fringes to mainstream American finance. Don’t think that this is just about price. It’s about legitimacy and getting the stamp of approval from traditional finance.
Moreover, the momentum is building on itself now. More institutional money creates more stability, which attracts even more institutional money. When giants like BlackRock and Fidelity are managing Bitcoin ETFs, it gives smaller institutions permission to jump in without looking reckless. MicroStrategy’s stock jumped 4.7% and Coinbase gained 5.4% on this news, showing how Bitcoin’s rise lifts the entire crypto ecosystem.
However, there’s a catch. As Bitcoin becomes more like traditional investments and follows normal market patterns, it might lose some of its appeal as a hedge against the traditional financial system. The rebel is slowly becoming part of the establishment.
