This week, the team sat down with Alex Thorn, Head of Firmwide Research at Galaxy Digital, to break down Bitcoin’s paradoxical “maturity phase.” The conversation explored how the distribution from early whales to new investors isn’t bearish; it’s a sign of deepening liquidity, institutional adoption, and a more stable long-term market.
Alex explains why “bullish selling” marks a turning point for Bitcoin’s evolution, why the four-year cycle is dead, and how passive institutional flows will define the next decade. They also covered rising economic malaise, the “slopification” of markets, and why stablecoins may prolong the dollar’s dominance while amplifying Bitcoin’s role as the ultimate scarce asset.
The Slop Era and the Paradox of Maturity
Alex opens with a tongue-in-cheek discussion of “slop”—the endless flow of monetary and political noise that defines our time.
“Slop” expands with the money supply, mirroring monetary debasement.
The Treasury Secretary tweeting about Bitcoin on White Paper Day shows how far the narrative has come from previous administrations.
Bitcoin’s paradox: it’s owned by both anarchists and asset managers, by cypherpunks and RIAs; we’re witnessing the passing of the torch.
As institutions integrate Bitcoin, the ideological purity fades, but the structural maturity grows.
Thorn frames this as a natural evolution: from hobbyists to professionals, from volatility to stability.
The Next Phase: Passive Flows and Institutional Adoption
Thorn emphasizes that Bitcoin’s next leg will be defined not by retail hype, but by passive accumulation.
Wirehouses like Morgan Stanley are now authorizing Bitcoin ETF allocations, with initial caps near 4%.
ETF “seasoning periods” and compliance reviews delay rollout, but the process is inevitable.
The market is transitioning from retail speculation to a global base of slow, consistent inflows.
Volatility dampening is critical—it’s what allows pensions, endowments, and sovereign funds to participate.
“The four-year cycle is over,” Thorn says; liquidity and institutional flows now drive the price, not halvings.
Economic Malaise and the New Speculation Culture
The group turns to the real economy—layoffs, declining opportunity, and the rise of nihilistic gambling.
October saw the highest corporate layoffs since 2003, yet asset prices remain inflated.
Median first-time homebuyers now average 40 years old, evidence of generational immobility.
Americans bet $150 billion on sports last year—more than books, concerts, and tickets combined.
Thorn calls it “nihilistic behavior”: people gambling because they no longer believe they can save.
This despair is fertile ground for Bitcoin, the asset that rewards long-term time preference.
Stablecoins, Regulation, and the Dollar’s Second Wind
Alex and Michael explore how the Genius Act and the stablecoin race may actually strengthen the dollar before Bitcoin eventually surpasses it.
Visa, Mastercard, Stripe, and PayPal are rushing to integrate stablecoins—“shoot first, ask questions later.”
Stablecoins extend the dollar’s global reach and could add decades to its dominance.
Banks are pushing back hard, fearing deposit flight and obsolescence.
But this same infrastructure builds digital plumbing that makes swapping USD for BTC seamless.
Thorn notes: “Stablecoins might make Bitcoin’s use as a medium of exchange irrelevant—but they make owning it even more powerful.”
Bullish Selling and Bitcoin’s Liquidity Renaissance
Despite online pessimism, Thorn views current whale distribution as one of Bitcoin’s most bullish developments yet.
Over $100 billion in five-year-old supply has changed hands in two years, the largest redistribution in history.
Early whales selling are not abandoning the network; they’re transferring ownership to deeper markets.
Liquidity has matured: large sales no longer crash the market.
“Every whale that exits is being replaced by institutions with long time horizons,” says Thorn.
This is Bitcoin’s “IPO moment”—moving from insiders to the public, a necessary rite of passage.
Does your Bitcoin keep you up at night?
Self-custody: Lose a device, forget a phrase, or make one wrong move, and your Bitcoin could be gone forever.
No inheritance plan: If something happens to you, how would your loved ones access what you’ve built?
Exchange exposure: Billions have been lost to hacks, outages, and custodians failing altogether.
That’s why more serious investors are moving to insured, multi-institution custody with built-in inheritance planning and seamless access to financial services.
Onramp — Where Security Meets Simplicity.