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- Bitcoin is painting a bullish picture as more firms look to acquire it as a reserve asset.
- Bitcoin ETFs recorded $1.48 billion in inflows following Goldman Sachs announcement of its Bitcoin ETF holdings.
- The OCC confirmed the CFTC Bitcoin ETF options approval as analysts speculate they could launch within 24 hours.
Bitcoin (BTC) began the week positively, rising over 3% above the $91K threshold on Monday. Despite the recent rise, BTC could begin another extended bullish move as top firms are increasing their Bitcoin holdings and potentially adopting it as a reserve asset. Speculations around the launch of Bitcoin ETF options could also spur more attention and demand for the top digital asset.
Why Bitcoin could stage another bullish run
Corporate firms are increasing their BTC holdings
Bitcoin will likely begin another bullish run as several institutions have stepped up their buying pressure in the past week.
- MicroStrategy announced it purchased 51,708 BTC for $4.6 billion.
- Semler Scientific purchased 215 Bitcoin for $17.7 million. The company initially added Bitcoin as a treasury asset in May and has since purchased $88.7 million worth of BTC.
- Mara Holdings (formerly Marathon Digital) and Metaplanet shared plans to acquire additional BTC from sales of convertible note offerings and bonds.
- Cosmos Health, a global healthcare group, announced that it has integrated Bitcoin and Ethereum as reserve assets.
- AI firm Genius Group also announced that it has launched a Bitcoin treasury with the purchase of 110 BTC worth $10 million. The firm's purchase came at an average price of $90,932 per BTC.
The rush among firms to integrate Bitcoin as a reserve asset reflects growing confidence in the number one digital asset, particularly after Donald Trump's victory in the presidential elections.
Increased Bitcoin ETF inflows post-election
Bitcoin ETFs recorded inflows of $1.5 billion last week, still largely influenced by the results of the US presidential elections earlier in the month. The high inflows follows US Bitcoin ETFs' 20,560 BTC purchase last week, suggesting high demand for the leading cryptocurrency among institutional investors.
Notably, Goldman Sachs revealed last week that it holds $710 million worth of Bitcoin through ETFs.
Likewise, Bloomberg senior ETF analyst Eric Balchunas stated that Nasdaq is ready to list options for BlackRock's IBIT "as soon as tomorrow," following the Office of the Controller of the Currency’s (OCC) confirmation of the Commodities & Futures Trading Commission (CFTC) approval of the products.
This could give room for wider adoption as exchanges begin trading options on the crypto products.
Tether mints 1 billion USDT tokens
Stablecoin issuer Tether minted 1 billion USDT tokens on the Ethereum network on Monday, stirring optimism in the crypto market. This is because an increase in stablecoin reserves reflects rising market momentum.
Tether transferred half of the newly minted USDT tokens to crypto exchange Binance, indicating that more traders and investors are seeking to invest in crypto.
As previously "anti-Bitcoin" investors and companies have begun to declare new Bitcoin holdings, the market may likely see increased bullish sentiment toward BTC.
What does this mean for Bitcoin?
Institutional investors' increasing adoption of Bitcoin signifies a major shift in the market's perception of the top digital currency from a controversial asset to a legitimate investment. As regulatory clarity improves, institutions are more willing to integrate Bitcoin into their portfolios, indicating its growing acceptance as an alternative to assets like gold.
Additionally, the impact of the 2024 elections has left speculators wondering just how high Bitcoin can go, with more firms trying to secure a good spot in the bull cycle.