Kindly MD’s Massive $5 Billion Bitcoin Gamble Threatens to Crush the Altcoin Market
Wall Street's latest crypto move sends shockwaves through digital assets.
The $5 Billion Bitcoin Bet
Kindly MD just placed a monumental wager on Bitcoin—diverting massive capital toward the flagship cryptocurrency while leaving altcoins scrambling. This institutional pivot toward 'digital gold' accelerates Bitcoin's dominance at the precise moment smaller tokens need liquidity most.
Altcoins Face the Squeeze
When whales move billions into Bitcoin, alternative cryptocurrencies typically bleed out. Market dynamics don't lie—capital floods toward perceived safety during major bets, starving emerging projects of oxygen and investment. Traders now watch altcoin charts with sweaty palms as Bitcoin sucks all the momentum from the room.
Finance's predictable herd mentality strikes again—because why innovate when you can just follow the money?
At the expense of altcoins
"Institutional crypto exposure has, without fear, expanded into corporate balance sheets and treasury strategies," Kelvin Koh, co-founder and CIO at Asia-based venture capital firm Spartan Group, told Decrypt.
This has been the case since "the approval of U.S. Bitcoin ETFs in early 2024,” which had aligned with the TRUMP administration's pro-crypto policies that "have eventuated as promised," Koh said.
Those events have "normalized crypto exposure" and "opened the door for altcoin-focused digital asset treasuries," he added.
Yet the continued accumulation and expansion of DATs might open broader trade-offs, Koh opined.
"While DATs bring significant liquidity to the assets they target, for now this may be at the expense of the wider altcoin market," he said.
Koh co-authored a separate research paper on the future trajectory of DATs, where he traced the trend's first forays.
"DATs were almost exclusively Bitcoin-focused, with their appeal grounded in Bitcoin's narrative as a scarce, non-sovereign store of value acting as a hedge against fiat currencies," Koh wrote.
As a model, DATs rely heavily on raising equity to buy crypto, giving them high exposure to volatility that could cut off new capital and force asset sales that risk amplifying market declines, the paper argues.
“When hundreds of firms pursue the same strategy, the market structure becomes fragile,” Koh warned.
Decrypt has approached Kindly MD for comment.
