Bitcoin has started the day with strong increases in its price, bringing the world's largest cryptocurrency close to a new all-time high. These latest gains toward all-time highs are supported by continued purchases from companies increasing their Bitcoin treasury holdings, the growth of US spot ETFs, and a shift in sentiment following new US tariffs on gold bullion imports.
Companies Increase Their Bitcoin Treasury
The gains are partly due to the growing interest in cryptocurrencies among large investors. So-called digital asset treasury companies (listed vehicles dedicated to accumulating cryptocurrencies) have accumulated a Bitcoin reserve of $113 billion to date, according to data compiled by Coingecko. The largest exponent of this type of idea is Microstrategy, which has 628,791 bitcoins in reserve, which translates to approximately 3% of the total Bitcoin supply.
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Several factors have driven the latest bullish run, including an executive order by President Donald Trump, which he signed on Thursday, opening Americans' 401(k) plans to cryptocurrencies. This represents a major step forward for digital assets: according to the Investment Company Institute, 401(k) plans held $8.9 trillion in assets as of September of last year, which may encourage a significant portion of these assets to begin investing in these digital assets.
Furthermore, with gold facing supply bottlenecks and political risks due to the president's recent tariffs, Bitcoin's role as a borderless, tariff-free store of value is gaining ground among investors.
Finally, the president's pressure on the Fed to aggressively cut interest rates in the coming months is another reason for Bitcoin's rise, as this would favor risk assets thanks to increased investor demand.
Bitcoin and Ether's positioning has been heavily weighted toward September and December maturities, in line with the timing of rate cuts and continued adoption by the traditional financial system.
Source: Xstation 5
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