Coatue Management founder Philippe Laffont believes that Bitcoin is transitioning from a speculative asset to a core part of traditional portfolios due to decreasing volatility. He highlights how the asset’s price movements are now more controlled compared to its past wild fluctuations, citing bitcoin’s performance in 2025 as evidence. Laffont notes that institutions are entering the market as Bitcoin is displaying predictable behavior. Institutional involvement was previously limited due to Bitcoin’s volatility and unpredictability. However, with the price exhibiting a calmer pattern, Laffont points out how institutional interest has surged, driving the market’s expansion. This shift in investor sentiment, coupled with increased Bitcoin holdings by long-term investors, signifies a paradigm shift in the cryptocurrency landscape. 8Laffont’s perspective aligns with his firm’s investment strategy in both private and public companies within the crypto sphere, including Dune Analytics, Hut 8, and CoreWeave. However, he admits missing an early opportunity by not investing more heavily in Bitcoin. Laffont now advises investors to allocate a small portion of their assets to Bitcoin as a hedge against inflation, citing its potential for long-term growth. This advice is further supported by his observation that investor sentiment towards cryptocurrencies has evolved significantly over the years. He expects this trend to continue and predicts increased adoption in future financial portfolios.