Bitcoin has reached a new record high of over $122,000, driven by increasing institutional adoption and anticipation of “Crypto Week” in Washington . The price of Bitcoin has risen by 1.31% in the last 24 hours and over 40% in the last 90 days, underscoring its growing acceptance as a strategic asset .
Spot Bitcoin ETFs now hold over $138 billion in assets, with RIAs, hedge funds, and pensions driving a growing share . The approval of US spot Bitcoin ETFs in January 2024 marked a tipping point, allowing Bitcoin to be held via brokerages, pension funds, and insurance products . This growing institutional adoption is stabilizing Bitcoin's price and anchoring it in the economy .
The increasing demand for Bitcoin, particularly from institutional investors, is further propelling its price momentum . Public and private companies, institutional funds, and ETFs now hold approximately 3.5 million BTC, representing around 17% of the total fixed supply of 21 million . Metaplanet, a Japanese hotelier, announced the acquisition of an additional 797 Bitcoin, bringing its total holdings to 16,352 coins, making it the fifth-largest corporate holder of Bitcoin .
Increased institutional adoption has led to lower volatility, stronger infrastructure, and easier access, allowing Bitcoin to evolve into a functional store of value and eventually a usable medium of exchange . The inflow of institutional capital tends to stabilize buying and selling trends, with large firms acting with longer time horizons .
However, the price of Bitcoin can wildly fluctuate relative to government-issued currencies . For users hoping to use Bitcoin for daily spending, volatility can be a problem . Various techniques help stabilize Bitcoin to the dollar value without selling, such as tokens, synthetic currencies, and Discrete Log Contracts (DLCs) .
Bernstein analysts have revised their Bitcoin price target upwards, forecasting that the cryptocurrency could reach nearly $200,000 by the end of next year . Fidelity Investments predicts that the value of a single Bitcoin could soar to $1 billion by 2038-2040 .
Overall, the bias remains positive as long as BTC trades above the 20-day EMA . Bitcoin's long-term outlook remains bullish, supported by ETF inflows, increasing adoption, and institutional interest .