Veteran Investor Alex Xu Cuts Bitcoin Holdings, Lowers Next Bull-Market Valuation Forecast

Bitcoin’s valuations in previous bull markets were driven by halvings, institutional adoption and the “digital gold” narrative. Veteran investor Alex Xu has reassessed the long-term thesis, arguing that sovereign adoption of BTC as a reserve asset still faces policy resistance. He also sees shrinking crypto business models and gold’s pull on investment flows as factors raising the opportunity cost of holding Bitcoin.

Xu recently disclosed that he had reduced Bitcoin to about 30% of his overall investment portfolio and lowered his expectations for market-cap growth in the next bull market. Existing reports did not specify the amount sold, the transaction dates or his institutional affiliation. His assessment centers on weaker new demand and less narrative momentum for BTC than in previous cycles, prompting him to shift from a bullish to a cautious long-term stance.