The good news here is that retail investors appear to be boosting their allocations to Bitcoin. And, over time, we can expect more institutional investors to start buying crypto, too. BlackRock (NYSE: BLK), which has $10 trillion in assets under management, says that there are three distinct types of institutional investors that could be joining the Bitcoin party soon: pension funds, endowments, and sovereign wealth funds. Once this money pool enters the crypto market, it will likely send Bitcoin higher.

The halving

And don't give up on the halving quite yet. While the performance of Bitcoin since the halving has been underwhelming, the reality is that any halving event does not magically lead to stratospheric boosts in the price of Bitcoin. The halving reduces the rate of creation of new Bitcoin by one-half, and this is what sets off a chain reaction of events that can lead to higher Bitcoin prices. In many ways, it's similar to the way monetary policy works, in that rate cuts or other measures can take time to impact the broader economy.