Mint Ventures Reduces Bitcoin Holdings Amid Decreased Expectations for Next Bull Market

Mint Ventures, a venture capital firm focused on cryptocurrency and blockchain technologies, has reduced its Bitcoin holdings. The decision was made by Alex Xu, Research Partner at Mint Ventures, who cited several reasons for the decrease in his expectations for the next bull market cycle.

One of the primary concerns is the potential energy driving the next cycle, which Mr. Xu believes is not as strong as it has been in previous cycles. He points to the lack of institutional support, citing that only a small number of US states have passed Bitcoin reserve legislation and central banks in major countries have shown no interest in BTC.

Another factor contributing to his reduced expectations is the negative impact of the overall downturn in the crypto industry on demand and consensus for Bitcoin. Many business models in the industry have been proven false, with only DeFi (Decentralized Finance) generating positive cash flow and profits.

The financing costs for Strategy, the largest buyer of BTC, are also rising, which could lead to significant marginal selling pressure if it reduces its buying speed or depletes its financing capacity. Additionally, gold, Bitcoin's main competitor in the non-sovereign asset sector, has narrowed the gap with Bitcoin in terms of product offerings.

Mr. Xu emphasized that his decision to reduce his expectations is not a bearish call on Bitcoin, and he remains bullish on the asset despite reducing his holdings. He believes that if new positive factors emerge or external circumstances change, he may reassess his position and potentially buy back into Bitcoin.