Cryptocurrency Bitcoin resurges to a peak.
In a significant shift for the digital currency market, institutional investors are increasingly embracing Bitcoin, driving its emergence as a core portfolio asset. This trend, which has been gaining momentum, is not only boosting the marketing power of Bitcoin but also contributing to market liquidity and gradual improvements in price stability.
The U.S. President, Donald Trump, made headlines by paving the way for the U.S. private retirement system to be more open to riskier investments in digital currencies. This move, coupled with two Executive Orders aimed at ending the unfair treatment of crypto companies by banks and paving the way for digital assets in American retirement plans, has further catalysed institutional interest in Bitcoin.
Moreover, major U.S. banks such as Citigroup, Goldman Sachs, Wells Fargo, and Morgan Stanley are developing Bitcoin products for their clients. The growing involvement of these financial giants strengthens market stability and signals the growing mainstream acceptance of Bitcoin.
The influx of institutional investors has improved Bitcoin's credibility and liquidity in the market. While Bitcoin remains highly volatile, on-chain data indicate a roughly 32% compression in volatility in 2025, correlating with institutional accumulation and enhanced regulatory frameworks.
Institutional strategies are evolving, with some hedge funds reducing Bitcoin exposure as a reaction to short-term fluctuations, while long-term institutional investors like Harvard University allocate significant amounts as a macro hedge and strategic reserve asset. Large corporations and corporate treasuries have also been active buyers, surpassing ETFs in Bitcoin accumulation in mid-2025.
The Bitcoin price is currently trading at an impressive $122,097, having surpassed the $120,000 mark on Monday morning. Bitcoin ETFs, such as the iShares Bitcoin ETF from BlackRock, recorded new inflows of over $680 million in just two days towards the end of last week. The "Bitcoin Direct ETP" and "Ethereum Direct ETP" from NxtAssets also allow for simple investment in Bitcoin or Ethereum without the need for a wallet.
With institutional investors controlling roughly 17–31% of Bitcoin’s circulating supply, Bitcoin's potential for growth is substantial. Forecasts project growth at a 28.3% Compound Annual Growth Rate (CAGR) over the next decade, with prices potentially reaching $1.4 million by 2035. However, Bitcoin's inherent volatility remains higher than traditional assets, so while institutional involvement improves stability somewhat, Bitcoin still carries substantial market risk.
This evolving participant landscape makes Bitcoin a growing, yet still relatively high-risk, strategic asset within diversified portfolios. With 13 of the 25 largest U.S. banks currently developing Bitcoin products, the all-time high marked in July for Bitcoin may be within reach.
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