Despite strong institutional demand, Bitcoin (BTC) has struggled to regain the $100,000 level for the last 50 days, with investors questioning the reasons behind its bearishness despite a seemingly positive environment.
This price weakness is particularly interesting given the executive order of the US strategic Bitcoin Reserve issued by President Donald Trump on March 6, allowing BTC to be acquired as long as it follows a “budget-neutral” strategy.
Bitcoin can’t keep up with gold returns despite aggressive news flow
On March 26th, North American video games and consumer electronics retailer Gamestop Corporation (GME) announced plans to allocate a portion of its corporate reserves to Bitcoin. The company, which was on the brink of bankruptcy in 2021, successfully completed a historic short squeeze, and by February 2025 it had managed to secure an impressive $4.777 billion cash equivalent.
The largest company Bitcoin Holding. Source: bitcointreasuries.net
The number of US-based and international companies is growing. The Michael Saylor Strategy (MSTR) playbook includes Metaplanet, a Japanese company that recently appointed Eric Trump, the son of US President Donald Trump, to the newly established Strategic Advisory Committee. Similarly, Mining Conglomerate Mara Holdings (MARA) has adopted Bitcoin Treasury policy to “hold all BTC” and increase exposure through debt provision.
There must be a strong reason for Bitcoin investors to sell their holdings, especially as gold is only 1.3% below its all-time high of $3,057. For example, the US administration adopted a pro-cryptic stance after Trump’s election, but the infrastructure needed to be Bitcoin serves as collateral and integrates into the traditional financial system remains largely underdeveloped.
Bitcoin/USD (Orange) vs. Gold/S&P 500 Index. Source: TradingView / Cointelegraph
The US Spot Bitcoin Exchange Trade Fund (ETF) is limited to cash settlements, preventing physical deposits and withdrawals. Fortunately, potential rules changes currently under review by the U.S. Securities and Exchange Commission will help reduce capital distributions and increase tax efficiency, according to Chris J. Terry, chief architect at Bitseeker Consulting.
Integration with Regulation and Bitcoin Tradfi remains a problem
Banks like JPMorgan primarily act as intermediaries or administrators of cryptocurrency-related devices such as derivatives and spot Bitcoin ETFs. Repeal of SAB 121 Accounting Rules on January 23 – The SEC’s decision to impose strict capital requirements on digital assets does not necessarily guarantee wider adoption.
Some traditional investment companies, such as Vanguard, reportedly have been restricted by managers like Bny Mellon to their products, while still banning clients from trading or holding shares in Bitcoin ETFs. In fact, a considerable number of wealth managers and advisors are unable to provide cryptocurrency investments to clients, even if they are listed on US exchanges.
The Bitcoin derivatives market lacks clarity in regulations, with most exchanges choosing to ban North American participants and registering their companies in fiscal sales. Despite the growth of the Chicago Mercantile Exchange (CME) over the years, it only accounts for 23% of Bitcoin’s $56.4 billion futures open interest, but competitors benefit from low capital restrictions, ease of customer onboarding, and regulatory oversight on trading.
Related: SEC Plans Plans More Crypto Roundtables for Transactions, Custody, Tokenization, and Defi
Bitcoin Futures Open Interest Ranking, USD. Source: Coinglass
Institutional investors are hesitant to get exposure to the Bitcoin market due to concerns about lack of transparency between market manipulation and major exchanges. The fact that Binance, Kucoin, OK, and Kraken paid substantial fines to US authorities due to potential money laundering violations and unauthorized operations further promotes negative sentiment towards the sector.
Ultimately, buying rights from a few companies are not enough to push Bitcoin prices to $200,000, and additional integration with the banking sector remains uncertain despite more favorable regulatory conditions.
Until then, Bitcoin’s benefits will continue to be limited as risk awareness continues to rise, especially within the institutional investment community.
This article is for general informational purposes and is not intended to be considered legal or investment advice, and should not be done. The views, thoughts and opinions expressed here are the authors alone and do not necessarily reflect or express Cointregraph’s views and opinions.
