On May 9, 2025, Bitcoin's price reached a record $104,000. This surge is attributed to increased institutional investor interest and rising ETF demand.
Institutional Crypto Investments
Interest in Bitcoin has been shown by banks, asset management firms, and various institutions. The majority of this demand is coming from ETFs that track the performance of BTC and ETH, holding these cryptocurrencies in their reserves. According to James Seyffart from Bloomberg, the total inflows into Bitcoin-based ETFs have reached a record high of $40.33 billion. This figure signifies a significant recovery following the downturn earlier this year.
Bitcoin Reserve Strategy
The process of companies adopting Bitcoin as a reserve asset is accelerating. At the Strategy World 2025 event, Strategy Chairman Michael Saylor stated that companies holding Bitcoin reserves are becoming stronger. Simion Gerovich, CEO of Japanese Metaplanet, anticipates that many companies will add Bitcoin to their reserves soon. Strategy CEO Phong Le predicts that the number of firms holding Bitcoin could rise from 70 to 700 by next year.
Impact of Monetary Supply on Crypto Rise
Data shared by Julien Bittel from Global Macro Investor indicates a strong relationship between Bitcoin's price and the global M2 money supply. While inflation concerns drive investors towards Bitcoin, its performance during uncertain times has been mixed. However, with diminished uncertainty, BTC has been rising.
Recent developments show that Bitcoin is increasingly being adopted as an asset protection tool by both institutional and individual investors. The strengthening of ETFs, corporate diversification strategies with crypto assets, and macroeconomic dynamics support the rising prices.
