When it comes to the cryptocurrency market, as a whole, Bitcoin news is often at the forefront of the conversation. As the pioneer and undisputed King of Crypto, Bitcoin has had the watchful eye of investors for the last decade. It has reached crazy peaks and scary lows, but investors had a plateau in mind during 2024: $70k per token.
This was an important benchmark for those closely watching the crypto investment. An important development may have unlocked the potential for Bitcoin to finally achieve that plateau and even continue to climb in the months and years to come.
Bitcoin Reclaimed $70K Just Before Halloween 2024
For a long time, speculation reached a fevered pitch about Bitcoin and its ability to achieve the $70k mark again. For the first time in July, it approached that plateau in October 2024. This had to do, in large part, to the approval of options trading on BTC ETFs by the Securities and Exchange Commission (SEC).
The SEC approved options trading for Bitcoin Exchange (BTC)-traded funds (ETFs) on two of the largest stock exchanges in the United States. By allowing investors to trade options tied to those Bitcoin ETFs on the Chicago Board Options Exchange (Cboe) and New York Stock Exchange (NYSE), it provides stability to Bitcoin.
Investors can trade in the ARK21 Shares Bitcoin ETF, Grayscale Bitcoin Trust, and Fidelity Wise Origin Bitcoin Fund, among others. Investors are now able to use these derivative to create a flexible means of hedge positions or to speculate on price movements of Bitcoin without having to hold BTC.
The approval is a major step for Bitcoin as it continues to try to integrate into more traditional financial markets. As there is increased market participation and institutional buying, Bitcoin is expected to become solidified as a key asset for most traditional investment portfolios. This is especially true for institutional investors who had previously been cautious about Bitcoin due to lack of regulation and general volatility.
Bitcoin Surges to $93K
Since then, Bitcoin has continued to surge. It hit to $83K at the end of March, ultimately settling in at $97K as of May 3. Favorable macro conditions, regulatory developments, and institutional activity were key factors in driving the price up substantially.
A major catalyst for the move is the announcement by Strategy that it had acquired another 15,355 BTC, which brings it to just over 553,000 BTC in total holdings. It also doesn’t hurt that Bitcoin ETFs saw inflows of $2.68 billion just last week, its highest number since December.
Another reason for the boost is because there is an expectation that the Federal Reserve could be making cuts to interest rates as soon as June because of slow economic growth. Bitcoin would then become a much more attractive option compared to more traditional assets.
Bitcoin holders have strong conviction because of positive technical indicators as well, like the all-time high realized market cap. With inflation concerns and global uncertainty abound, Bitcoin and its role as a hedge is starting to gain traction and could be pointing toward bullish momentum in the near future.
Semler Scientific Leading the Charge
A medical technology company, Semler Scientific, Inc., which is focused on chronic disease detection, has made a concerted effort to commit to Bitcoin as a treasury reserve asset. Back on April 30, Semler announced that it had acquired 165 BTC at a price of $15.7 million.
With that purchase, Semler brought its total holdings up to 3,467 BTC. The purchases came from proceeds from an at-the-market (ATM equity offering that was initially started at the beginning of April. The day prior to its acquisition, Semler’s Bitcoin portfolio had an estimated market value of roughly $330 million.
The company has achieved a big year-to-date Bitcoin yield of 23.8%. Semler is a believer that this key metric will help investors be able to evaluate the accretive impact of its approach to Bitcoin acquisition.
The company also stated that it remains committed to its core mission within the healthcare space. It did note, however, that it is actively attempting to leverage market opportunities and current cash flow in order to build a different treasury model, one that is heavily anchored in the digital asset space.
Arizona Crates State Bitcoin Reserve
In a national trend, the Arizona Legislature approved a pair of bills that would allow the state to invest $3 billion – roughly 10% of public funds – into digital assets, primarily Bitcoin. If it is signed into law, Arizona would become the first state to have an established state-level Bitcoin reserve.
This would also align with public statements for a strategic crypto reserve from President Donald Trump. The bills still have to go through an approval from Governor Katie Hobbs; a veto would stop the effort of the bill altogether.
Several other states are pursuing similar bills in order to add Bitcoin to their respective balance sheets. This has created a debate as to whether states should have their own strategic Bitcoin reserves as a modern solution to hedge against inflation.
Metaplanet Launches Bitcoin Treasury
In a continuation of institutional action backing Bitcoin’s rise, the Tokyo-based Metaplanet announced that it is launching a subsidiary in Florida to be called the Metaplanet Treasury Corp. This will be part of a strategic Bitcoin treasury push by the company. This arm of the company will have up to $250 million in Bitcoin capital, and will act as a vehicle to support global operations for the company while also giving it an avenue to institutional capital on U.S. soil.
Metaplanet is already the largest publicly traded Bitcoin holder in all of Asia. It chose Florida because of its reputation as a hub for adoption, innovation, and financial liberalization, specifically where Bitcoin is concerned. Metplanet’s CEO, Simon Gerovich, noted that the environment in Florida is rapidly becoming crypt-friendly, making it one of the most important factors in Metaplanet’s decision.
Major Institutions Buying BTC
A major part of Bitcoin’s most recent surge is that it is slowly becoming an investment darling with institutional investors. Strategy has been leading the charge, but that is just the tip of the iceberg.
In the last week, some of the biggest asset managers on the globe put out disclosures about their stock investments in the final investment quarter of 2024. Bitcoin ETFs were definitely a favorite, with billions being allocated by buyers like the Bank of Montreal, Wisconsin’s pension fund, Goldman Sachs, and even on of the sovereign wealth funds of Abu Dhabi.
What is most interesting is that fund managers required to disclose their holdings – more than $100 million in public equities – have become preferred buyers of Bitcoin ETFs. Over 1,000 funds required to file their holdings have made purchases in spot Bitcoin ETFs with cumulative holdings of more than $38.7 billion, up substantially from $12.4 billion in Q3 2024.
Big banks are getting in on the action, spending hundreds of millions of dollars to acquire Bitcoin ETFs. The Bank of Montreal alone increased its holdings by more than 1,000% from the previous quarter. As more heavyweight institutional investors continue to join the fray, Bitcoin’s price will only continue to trend upward.
