Riot Platforms Vice President of Research: Bitcoin can be understood as a "savings reservoir" for global excess capital.

Jinse Finance reports that Pierre Rochard, Vice President of Research at Riot Platforms, stated that Bitcoin can be understood as a “savings reservoir” for global excess capital: When interest rates are low, liquidity is abundant, and there is a scarcity of high-expected-return (ROIC) real investment opportunities, savings capital flows into Bitcoin—because of its absolute scarcity, it is a global digital open-source network with a fixed supply of 21 million coins. Over time, an increasing amount of Bitcoin is held by long-term holders, corporations, exchange-traded funds (ETFs), and government institutions, who regard BTC as a strategic reserve asset rather than trading inventory. This causes Bitcoin’s effective circulating supply to become highly rigid: most new demand can only be reflected through an increase in fiat-denominated prices, rather than through new tokens entering market circulation. When the market environment reverses (interest rates rise or risk appetite declines), speculators may choose to sell, but a large number of long-term savings-oriented holders will not follow suit; most of the capital that has flowed into the market will remain settled. This supply-demand asymmetry creates a “ratchet effect” in Bitcoin’s exchange rate: while deep corrections are common, the post-crash bottom is often higher than the low of the previous cycle.