Kevin O'Leary and the news that changes priorities: energy surpasses bitcoin

The most relevant news from investors at the moment is not about cryptocurrencies directly, but about the reconfiguration of their portfolio towards tangible assets. Kevin O’Leary has identified a fundamental shift in the market: energy has become a more strategic asset than cryptocurrencies themselves. This transformation reflects a deep understanding of the dynamics that will dominate markets in the coming years.

Strategic Refocus: From Altcoins to Physical Infrastructure

The change of direction has been radical. O’Leary has shifted his investments from smaller-cap tokens to tangible infrastructure projects: land with deposits of natural gas in Alberta and the United States, copper and other energy resources. Their reasoning is clear: both Bitcoin mining and artificial intelligence demand massive amounts of energy. Power controllers have access to two exponentially growing markets.

In parallel, it has maintained selective exposure to crypto-asset platforms that it considers critical infrastructures. It considers Robinhood as the main bridge to manage securities and cryptocurrencies in a single portfolio, while Coinbase is positioned as the market standard for companies to manage stablecoin transactions and payments to suppliers.

The Bitcoin and Ethereum dilemma: concentration of the market alpha

This is where the news becomes uncomfortable for many. O’Leary has issued a blunt warning towards altcoins, which he dismissively qualifies. His thesis: sovereign wealth funds and indexers only interested in Bitcoin and Ethereum. Both cryptocurrencies capture more than 97% of the market’s return, making most alt tokens questionable investments for institutional allocators.

In October, it sold 27 different positions, under this premise. His criticism of Solana is particularly severe: barely any software facing a monumental challenge to replicate Ethereum’s marketing and adoption. The reality is that big capital has already made decisions: concentration on proven assets.

Regulatory Hurdles: What the Industry Expects from the Clarity Act

However, the news also includes an important pause. O’Leary does not anticipate significant capital appreciation in cryptocurrencies until the “Clarity Act” is passed, scheduled for mid-May. This legislation is crucial because it resolves ambiguities about stablecoin yields.

O’Leary points out the inconsistency: banks generate yields on deposits while stablecoin holders remain on the sidelines. He calls this disparity un-American. Coinbase has resisted certain provisions on stablecoin yield, but O’Leary anticipates that lawmakers will prioritize this dossier before the midterm elections.

The situation reflects a real regulatory dilemma. Funds managing $500 billion are looking to allocate up to 5% to the crypto asset class, but their compliance departments are currently blocked. These investors are agnostic about blockchain narratives; they are only interested in liquidity and yield.

Market movements: Pudgy Penguins consolidates its position in NFTs

While the focus is on Bitcoin and Ethereum, other projects are building broader ecosystems. Pudgy Penguins emerges as one of the most robust NFT brands of the current cycle, transitioning from speculative “digital luxuries” to a multi-sector intellectual property platform.

Its strategy is to engage users through conventional channels first: toys, retail partnerships, and viral content, before bringing them into Web3 through games, NFTs, and the PENEGU token. The ecosystem already encompasses physical-digital products (more than $13 million in retail sales and more than 1 million units sold), gaming experiences (Pudgy Party surpassed 500,000 downloads in two weeks), and a widely distributed token (airdropped to more than 6 million wallets).

Volatility in altcoins: Dogecoin under pressure along with risky assets

Dogecoin, meanwhile, shows the less favorable side of the news for speculators. The memecoin retreated approximately 7.83% in 24 hours as Bitcoin declined, trading at $0.11. This drop reflects a general risk-off movement in the market.

The token pierced key support earlier at $0.1218, turning that level into short-term resistance even after a brief bounce from $0.115. Traders keep an eye on the $0.115-$0.12 zone as a critical decision area. A consolidation and recovery towards $0.1218 would suggest stabilization, while a break below $0.115 would open the door for declines towards $0.108-$0.10.

In broader context, Bitcoin is trading at $83.53K (down 6.56% in 24 hours) and Ethereum at $2.77K (down 8.12%). This overall move underscores O’Leary’s premise: in periods of volatility, only assets with strong fundamentals and institutional adoption hold up.

The key news continues to be the reconfiguration of investment priorities towards energy and infrastructure, while waiting for regulatory clarity that will unlock billions in outstanding institutional capital.