The Flippening Isn't Coming — It's Here: Bitcoin Emerges as the Ultimate Store of Value

For years, real estate has been one of the most dependable ways to build wealth. Home values generally rise over time, and property ownership has long

Rising mortgage rates and a slowing real estate market are driving investors toward alternative stores of value, such as Bitcoin (BTC). Here's how the two assets compare and how they're impacting each other.

Key Takeaways

The housing market is slowing as a result of high mortgage rates and an increase in home inventory. This is making it more difficult to sell homes quickly and at a profit.

As a response to the slowing housing market, many investors are turning to Bitcoin as an alternative store of value.

The total supply of Bitcoin is capped at 21 million coins, which makes it inherently scarce compared to real estate, which can be influenced by debt cycles and ongoing development.

Institutions are playing a major role in driving up the demand for Bitcoin with the approval of spot Bitcoin ETFs in early 2024, which triggered a massive wave of institutional inflows.

A growing number of investors are also withdrawing their Bitcoin from exchanges, signaling strong conviction in its long-term potential rather than treating it as a short-term trade.

RISING MORTGAGE RATES PUSH INVESTORS TOWARD ALTERNATIVE STORES OF VALUE

The housing market is experiencing a sharp slowdown as a result of high mortgage rates and an increase in home inventory. This is making it more difficult to sell homes quickly and at a profit.

The average 30-year mortgage rate remains high at 6.96%, a stark contrast to the 3%–5% rates common before the pandemic. Meanwhile, the median U.S. home-sale price has risen 4% year-over-year, but this increase hasn't translated into a stronger market—affordability pressures have kept demand subdued.

According to recent data, the average home is now selling for 1.8% below asking price — the biggest discount in nearly two years. Meanwhile, the time it takes to sell a typical home has stretched to 56 days, marking the longest wait in five years.

In Florida, the slowdown is even more pronounced. In cities like Miami and Fort Lauderdale, over 60% of listings have remained unsold for more than two months. Some homes in the state are selling for as much as 5% below their listed price — the steepest discount in the country.

As a response to the slowing housing market, many investors are turning to Bitcoin as an alternative store of value.

The total supply of Bitcoin is capped at 21 million coins, which makes it inherently scarce compared to real estate, which can be influenced by debt cycles and ongoing development that expands supply.

This scarcity is colliding with surging demand, particularly from institutional investors, strengthening Bitcoin’s role as a long-term store of value. The approval of spot Bitcoin ETFs in early 2024 triggered a massive wave of institutional inflows, shifting the supply-demand balance.

Since their launch, these ETFs have attracted over $40 billion in net inflows, with financial giants like BlackRock, Grayscale, and Fidelity controlling the majority of holdings. The demand surge has absorbed Bitcoin at an unprecedented rate, with daily ETF purchases ranging from 1,000 to 3,000 BTC — far exceeding the roughly 500 new coins mined each day. This growing supply deficit is making Bitcoin increasingly scarce in the open market.

At the same time, Bitcoin exchange reserves have dropped to 2.5 million BTC, the lowest level in three years. More investors are withdrawing their holdings from exchanges, signaling strong conviction in Bitcoin’s long-term potential rather than treating it as a short-term trade.

Further reinforcing this trend, long-term holders continue to dominate supply. As of December 2023, 71% of all Bitcoin had remained untouched for over a year, highlighting deep investor commitment.

While this figure has slightly declined to 62% as of Feb. 18, the broader trend points to Bitcoin becoming an increasingly tightly held asset over time.

This institutional demand and scarcity are driving up the price of Bitcoin, making it a more attractive option for investors seeking a hedge against inflation and a store of value that can appreciate over time. As a result, we are seeing a shift in investment preferences, with younger generations prioritizing digital assets like Bitcoin over traditional real estate.

A NEW GENERATION OF INVESTORS PREFERS DIGITAL ASSETS, SETTING THE STAGE FOR THE ‘FLIPPENING’

As of January 2025, the median U.S. home-sale price stands at $350,667, with mortgage rates hovering near 7%. This combination has pushed monthly mortgage payments to record highs, making homeownership increasingly unattainable for younger generations.

To put this into perspective: A homebuyer putting 20% down on a $350,000 home at a 7% interest rate would pay around $1,925 in principal and interest each month. Over 30 years, this would add up