Bitcoin (BTC) blew past $94,000 last week, marking a strong 12% rally in a matter of days.
As I write this on Monday morning, it’s priced at over $95,000.
It’s exciting to see BTC move closer to $100,000 again.
But I’m even moreexcited about why it’s happening.
Because this rally isn’t being driven by speculation or short-term hype.
It’s being fueled by institutions with long time horizons and deep pockets.
While retail investors were pulling money out of Bitcoin ETFs earlier this month, sovereign wealth funds, hedge funds and public companies were aggressively loading up on bitcoin on the open market.
Retail is just starting to trickle back in, with $2.2 billion in ETF inflows between April 21 – 23 alone.
The question is: What did these institutions realize that everyday investors are just now starting to figure out?
The answer could lead to $1 million bitcoin by the end of the decade.
The Great Decoupling
When bitcoin first started gaining mainstream attention, early adopters positioned it as a form of “digital gold” that would move counter to the stock market and fiat currencies.
That isn’t how it has always played out.
Even recently, BTC dropped along with the stock market — tech stocks especially — hitting a low in the $75,000 range shortly after the Trump administration announced its sweeping tariffs.
But now it’s decoupling from tech stocks and starting to return to this “digital gold” narrative.
Bitcoin has even regained its correlation with gold, which is considered a safe haven asset because it usually outperforms other asset classes in uncertain times.
Why is this decoupling happening?
Because of its independence.
Remember, the idea of bitcoin is that it’s a decentralized currency. It’s not under the control of any country’s central bank.
This allows it to remain unaffected in times when any particular country is going through macroeconomic uncertainties.
And that’s a big factor in this recent rally.
A global trade war is looming, and investors are once again looking at bitcoin as a hedge against inflation, uncertainty and even the potential of de-dollarization.
Look, it’s well documented that Trump is planning on creating a Strategic Bitcoin Reserve here in the U.S. And there are whispers about the Swiss National Bank potentially buying bitcoin too.
This just shows you that the idea of crypto as a geopolitical safe haven is starting to feel less fringe and more inevitable.
One of the most recent signs of bitcoin’s emerging significance as a viable asset class is the launch of Twenty One Capital, a new $3.9 billion investment firm backed by heavyweights like Tether, Bitfinex and SoftBank.
It will eventually trade under the ticker “XXI.”
The firm is set to go public with more than 42,000 BTC. That puts it in the same lane as MicroStrategy, making it one of the largest corporate bitcoin holders on the planet.
But bitcoin regaining its potential as digital gold is only one part of this story.
There’s another reason driving this recent rally that could be even more important…
The Finite Supply of Bitcoin
Fact it, only 21 million bitcoins can ever be mined.
And as demand from institutions grows, the amount of BTC available to buy is decreasing every day.
In other words, the supply of bitcoin is running out.
Right now, just 2.6 million BTC are sitting on exchanges. That’s the lowest level since November 2018.
Over 425,000 BTC have been pulled off exchanges since November 2024.
Meanwhile, in just the first four months of 2025, public companies have added nearly 350,000 BTC to their balance sheets.
That’s more than 30,000 BTC per month on average.
This consistent level of accumulation combined with a dwindling liquid supply is setting the stage for what could be a major bitcoin supply crunch.
And that makes this current rally different from previous bull runs, where price was mostly driven by hype and speculation.
This time it’s more about a long-term financial strategy.
And that’s good news for crypto investors.
Want more good news?
All three major U.S. banking regulators — the FDIC, the Office of the Comptroller of the Currency, and the Federal Reserve — just scrapped the old rules that kept banks away from crypto.
You see, for years, U.S. banks needed prior approval to engage in crypto-related activity.
This red tape often led to delays and confusion.
Usually, it also led to a hard “no.”
But as of this month, all three agencies have dropped their pre-approval requirements. Banks can now engage with crypto under the same compliance rules they use for other asset classes.
This is a massive reversal, and one I foresaw once Trump was reelected.
It’s a clear sign that a more crypto-friendly administration is in charge.
And as new rules emerge from Congress, I believe banks will finally have the clarity they need to participate in the crypto economy.
Here’s My Take
As someone who’s been following this market for over a decade, I can tell you…
This rally feels different.
Traditional financial institutions are starting to fully embrace bitcoin. Governments are too.
I believe this recent price rally reflects the early stage of a new phase for crypto, where it becomes a core asset class alongside stocks, bonds and gold.
The path is being cleared for bitcoin’s next major leg up. Institutional demand is rising, supply is falling and regulators are stepping aside.
And that’s why I believe $100,000 is just the start.
We could soon enter the phase where bitcoin crosses that line and never looks back. I’m convinced $1 million bitcoin is still on the table by the end of the decade.
Of course, we’re not seeing the same kind of rally yet with other major altcoins like ether (ETH) or Solana’s SOL.
But altcoins usually follow BTC’s lead, so I anticipate a more global crypto rally coming soon.
The question I have for you is: Are you in position before the next big crypto wave hits?
Regards,
Ian KingChief Strategist, Banyan Hill Publishing
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