Analyst says Bitcoin adoption trade has run out of fuel

A senior market analyst says the long-running bitcoin adoption narrative has already been priced in and no longer offers upside for investors.

Jim Bianco argues that markets act as discounting machines, absorbing major themes well before headlines confirm them.

He says bitcoin’s rise from roughly $25,000 to above $100,000 reflected a completed “TradFi rally” rather than fresh momentum.

According to Bianco, the move to record highs last year masked weakening demand beneath the surface.

He describes the late-stage advance as a “zombie rally” driven by residual enthusiasm rather than new capital.

Bianco claims that sophisticated investors began scaling back exposure from December 2024.

He suggests this explains why bitcoin has struggled to respond to recent positive developments.

Regulatory discussions and pro-crypto signals from political figures have failed to trigger a sustained rebound.

Bianco says the market has already accounted for these events months in advance.