Back in June, I wrote that Wall Street remaining on the sidelines is not necessarily bad for our industry. While most traditional investors are still observing, Bitcoin’s (BTC) mainstream momentum has been building over the last four months. Currently, the price is hovering around $18,000, steadily approaching its historical all-time high.

When we talk about asset valuation, the first step is always to understand the fundamental economics. Equities, bonds and real estate, for example, generally derive value from generating cash flows. Therefore, valuation of these assets involves projecting future cash flows. Commodities, on the other hand, are more utility-based, so their prices are anchored by industrial supply and demand.