Riot Platforms VP: Bitcoin Acts as a 'Savings Reservoir' for Global Surplus Capital

Citing Jinse, Riot Platforms' VP of Research, Pierre Rochard, stated that Bitcoin can be viewed as a 'savings reservoir' for global surplus capital. He explained that when interest rates are low, liquidity is high, and high-return investment opportunities are scarce, surplus capital flows into Bitcoin due to its absolute scarcity and fixed supply of 21 million. Over time, more Bitcoin is held by long-term holders, corporations, ETFs, and government institutions as a strategic reserve asset, not as inventory. This creates a highly inelastic effective circulating supply, where new demand is reflected in price increases rather than new tokens entering the market. Rochard noted that during market reversals, speculators may sell, but long-term holders tend to retain their holdings, leading to a 'ratchet effect' in Bitcoin's price, where post-crash bottoms are typically higher than previous lows.