The investment slope is a useful managerial tool for investment portfolio decisions. Considering the conventional meaning of the investment line slope, which is the representation of the “rise” (change in investment) over the “run” (change in return), the figure suggests potential relationship between the marginal propensity to invest in Bitcoin and conventional market investment scenarios.

According to conventional market theory, it is expected that an increase in income should induce an increase in investments, pushing the slope upwards. A drop in aggregate income correspondently induces a reduction in investments and correspondingly imprints a downward trend to the slope. The slope of the investment line helps investors to understand the variations of the marginal propensity to invest. The rises and falls of the slope indicate valuable insights on the relationship between income changes that might influence investment decisions.

As more investors adopt Bitcoin (BTC) to diversify their portfolio and earn potentially high returns, demand for this cryptocurrency may increase significantly. In such circumstances, BTC can experience a rapid rise in value, leading to a peak in investment. The cryptocurrency market is volatile and influenced by a multitude of factors in addition to income fluctuations, including geopolitical events, regulations, technological developments and general investor sentiment. Therefore, the bottom of BTC investments can be identified in hindsight, after the price of the cryptocurrency starts to rise. ^[1]