Despite the strong institutional demand, BTC (Bitcoin) struggled to recover $ 100,000 in the last 50 days, and investors have questioned the weaknesses despite the seemingly positive environment.
This price weakness is especially interesting given the US strategic Bitcoin preliminary order issued by President Donald Trump on March 6. This allows the acquisition for the acquisition of BTC to follow the “budget neutral” strategy.
Bitcoin does not follow the profit of gold despite the positive news flow.
On March 26, GME (Gamestop Corporation), a North American video game and consumer electronic retailer, announced plans to allocate some of the company’s reserve to Bitcoin. The company, which was just before bankruptcy in 2021, has successfully made a shortcut for shortcuts, and has secured $ 47.7 billion in cash and equal level by February 2025.
The largest company Bitcoin Holdings. Source: Bitcointreasuries.net
More and more US -based and international companies have followed the METAPLANET, a Japanese company, which appointed the newly established Strategic Advisory Committee of Eric Trump, the son of Donald Trump. Similarly, the mining company Mara Holdings (Mara) adopted the Bitcoin Treasury Policy to “maintain all BTCs” and increase the exposure by providing debt.
There must be a strong reason for Bitcoin investors to sell their shares. In particular, GOLD is dealing 1.3% lower than that of $ 3,057. For example, the US administration adopted a professional crypto position after the Trump election, but the infrastructure needed to serve as a collateral and integrate into a traditional financial system was not developed.
Bitcoin / USD (Orange) Gold / S & P 500 index. Source: TradingView / COINTELEGRAPH
The US Spot Bitcoin Exchange Transaction Fund (ETF) is limited to cash payments to prevent spot deposits and withdrawal. BitSeeker Consulting Chief Architect Chief Architect Chief Architect Architect Chris J. Terry, fortunately, is being reviewed by the US Securities and Exchange Commission Changes to potential rules can reduce capital gains distribution and improve tax efficiency.
Regulations and bitcoin integration of Tradfi are still a problem
Banks, such as JPMORGAN, mainly serve as intermediaries or managers of cryptocurrency -related devices such as derivatives and Spot Bitcoin ETFs. The abolition of the SAB 121 accounting rules on January 23 -The SEC ruling, which imposes strict capital requirements for digital assets, does not necessarily guarantee a wide range of adoption.
For example, some traditional investment companies, such as Vanguard, are still forbidden by customers to have a trading or equity of the Spot Bitcoin ETF, while managers like BNY MELLON are known to limit the exposure of mutual funds for these products. In fact, a large number of asset managers and torture can not provide customers with cryptocurrency investment even if they are listed on the US exchange.
The Bitcoin derivatives market lacks regulatory clarity, and most exchanges have been selected to prohibit North American participants and register their companies for financial security. Despite the growth of the Chicago Merchants Exchange (CME) for many years, only 23%of Bitcoin’s $ 56.4 billion gift interest interests, but competitors have fewer capital restrictions and reduce regulatory supervisions on customers on boards and transactions.
relevant: SEC is a four encryption round table for transactions, custody, tokenization, and defi
Bitcoin Futures Release Interest and USD. Source: COINGLASS
Institutional investors are reluctant to expose to the bitcoin market due to concerns about market manipulation and lack of transparency between major exchanges. The fact that Binance, Kucoin, OK, and Kraken paid a lot of fines to US authorities on potential violations and unlicensed operations of the potential funds also affected the negative feelings of the sector.
Ultimately, a small number of companies’ purchasing interests are not enough to push Bitcoin to $ 200,000, and despite the more favorable regulatory conditions, further integration with the banking sector is still uncertain.
Until then, the rising potential of Bitcoin will continue to be limited as the risk awareness increases, especially within the institutional investment community.
This article is for general information purposes and should not be considered legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.