Despite high institutional demand, Bitcoin (BTC) has struggled to recover the level of $ 100,000 in the last 50 days, which has led investors to question the reasons for the decline despite an apparently positive environment.
This low price is particularly intriguing given the strategic decree of the American Bitcoin reserve reserve issued by President Donald Trump on March 6, which authorizes the acquisitions of the BTC as long as they follow “non -budgetary” strategies.
Bitcoin fails to follow Gold yields despite the flow of positive news
On March 26, GameStop Corporation (GME), the North American video game retailer and consumer electronics, announced his intention to allocate part of his business reserves in Bitcoin. The company, which was about to go bankrupt in 2021, managed to take advantage of a short historic pressure and managed to obtain an impressive $ 4.77 billion in cash and equivalents by February 2025.
The biggest corporate bitcoin holders. Source: Bitcointheries.net
An increasing number of American and international companies have followed the Michael Saylor (MSTR) strategy book, including the Japanese firm Metaplanet, who recently appointed Eric Trump, son of US President Donald Trump, to his new strategic board of directors. Likewise, the mining conglomerate Mara Holdings (Mara) has adopted a Bitcoin treasure policy to “keep all BTCs” and increase its exposure through debt offers.
There must be a good reason for Bitcoin investors to sell their assets, especially since gold is only negotiated by 1.3% below its $ 3,057 summit. For example, while the American administration adopted a pro-Crypto position after the Trump election, the necessary infrastructure for Bitcoin serves as a warranty and is integrated into traditional financial systems remains largely not developed.
Bitcoin / USD (Orange) VS Gold / S&P 500 index. Source: tradingView / Cointelegraph
The American fund negotiated in Bitcoin (ETF) is limited to cash regulations, preventing deposits and withdrawals in kind. Fortunately, a potential change in rules, currently being examined by the Securities and Exchange Commission of the United States, could reduce the distributions of capital gains and improve tax efficiency, according to the chief of bitseeker consulting, Chris J. Terry.
Regulations and integration of bitcoin into tradfi remain a problem
Banks like JPMorgan mainly serve as intermediaries or guards for instruments linked to cryptocurrencies such as derivatives and Bitcoin ETF. The repeal of the accounting rule SAB 121 on January 23 – A SEC decision which imposed strict capital requirements on digital assets – does not necessarily guarantee broader adoption.
For example, certain traditional investment companies, such as Vanguard, always prohibit customers to negotiate or have actions of ETF Bitcoin Spot, while administrators like BNY Mellon would have restricted the exposure of investment funds to these products. In fact, a large number of managers and wealth advisers are unable to provide cryptocurrency investments to their customers, even when registered on American exchanges.
The Bitcoin derivative market lacks regulatory clarity, most exchanges choosing to prohibit North American participants and choose to register their companies in tax havens. Despite the growth of the Mercantile Chicago Exchange (CME) over the years, it still represents only $ 23% of $ 56.4 billion of Bitcoin, while competitors benefit from less capital restrictions, easier integration of the customer and less regulatory surveillance on exchanges.
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Bitcoin Futures Open Interest Classification, USD. Source: Coringlass
Institutional investors remain hesitant to expose themselves to the Bitcoin markets because of the concerns about market manipulation and a lack of transparency among the main exchanges. The fact that Binance, Kucoin, OK and Kraken have paid significant fines to the American authorities for potential violations of fighting money money laundering and license -free operations fuel the negative feeling towards the sector.
In the end, the interest in purchasing a small number of companies is not enough to push the price of Bitcoin to $ 200,000, and additional integration with the banking sector remains uncertain, despite more favorable regulatory conditions.
Until then, the potential for increased bitcoin will continue to be limited because the risk perception remains high, in particular within the community of institutional investments.
This article is for general information purposes and is not intended to be and must not be considered as legal or investment advice. The points of view, the thoughts and opinions expressed here are the only of the author and do not reflect or do not necessarily represent the opinions and opinions of Cointellegraph.
