• Bitcoin’s bull run is gaining momentum due to strong institutional investments and favorable policy shifts, including a pro-crypto U.S. administration.
  • Regulatory changes and the growing adoption of Bitcoin by banks, corporations, and governments are strengthening its position as a major global asset.

According to Bernstein analysts, the Bitcoin bull market continues to strengthen due to various positive market forces that have begun to merge. Analysis suggests that investors should take advantage of upcoming price increases since institutions are showing strong support and favorable policies contribute to upward movement.

Regulatory Changes Boost Institutional Bitcoin Adoption

Analysts indicate that the bull market initiated late in 2023, at the same time as U.S. spot Bitcoin exchange-traded fund (ETF) approval prospects increased. This market development led Bitcoin to rise from $25,000 to reach $46,000 by January 2024. ETF inflows, together with rising institutional adoption, set an all-time high value of around $74,000 before the market experienced a temporary halt.

Following the successful pro-crypto administration win in November 2024, new market forces emerged as major factors. The Trump administration aims to position the United States at the forefront of digital assets through measures that involve Bitcoin stockpile development and supportive regulatory frameworks. Bitcoin touched an unprecedented price level of around $109,000 when the inauguration took place in February.

Analyst Gautam Chhugani at Bernstein pointed to the Crypto Task Force as the entity responsible for the implementation of the national Bitcoin reserve. The analysts propose that implementation of the National Bitcoin Reserve would happen through funding from the Federal Reserve or Treasury but needs potential legislative backing.

Three main funding methods exist for this project, including issuing new debt and selling the Federal Reserve’s gold reserves. The current bitcoin ownership held by the government counts approximately $20 billion worth, which could contribute directly to the reserve. The adoption of these measures would likely spark nations to race with each other to establish their own sovereign bitcoin reserves.

Major Financial Institutions Increase Bitcoin Exposure

Bernstein points to recent 13F filings with the Securities and Exchange Commission as further validation of growing institutional interest. The sovereign fund of Abu Dhabi, Mubadala, revealed it spent $437 million on Bitcoin ETF investments. Three leading financial organizations, including Goldman Sachs, Barclays, and Paul Tudor Jones’ firm, have expanded their Bitcoin investments.

Bitcoin gains momentum from the rising investments made by corporate businesses. The company Strategy, which was formerly known as MicroStrategy, acquired an additional $742 million in Bitcoin, raising its total holdings to 478,740 BTC. Spot bitcoin ETF take has surpassed $5 billion since January 2023, according to forecasts by Bernstein, which predicts a $60 billion investment in 2025.

A major regulatory change took place when staff at the SEC chose to end their enforcement of SEC Staff Accounting Bulletin No. 121 (SAB 121). The recent change enables banks to offer crypto safekeeping services, which will make Bitcoin available to institutional market participants. Bitcoin has solidified its position to compete with gold through a new regulation plus enlarging bank corporate and governmental obligations, which drives its market potential higher.

Bitcoin’s market capitalization stands at $2 trillion, while gold maintains a $18 trillion value, which leads analysts to predict lucrative market opportunities. Bitcoin’s acquisition by financial organizations and governments transforms it into a strategic economic asset for worldwide markets.

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