Bitcoin Bull Run Is Just Starting as Institutions Buy In
A recent Bernstein report suggests that Bitcoin could soon see strong upward momentum, driven by increasing institutional investments.
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Analysts highlight Donald Trumpās victory in the U.S. presidential election as a key factor attracting more institutional capital into Bitcoin. This trend builds on the surge seen in early 2024, when the approval and launch of spot Bitcoin ETFs boosted Bitcoinās status as a reliable asset class for large investors.
Bernstein analysts believe many users and companies underestimated the impact of spot Bitcoin ETFs on the crypto market. As a result, Bitcoinās rapid price surge took many by surprise. Now, a stronger rally could be ahead, driven by a combination of positive market factors. Analysts also suggest that not only Bitcoin but also stocks of crypto-related companies, such as Strategy and Metaplanet, could see significant gains.
The confluence of adoption by banks, institutional investors, corporates and eventually sovereigns (directly or via sovereign funds) is positioning Bitcoin as the clear challenger to gold,
the report states.Ā
Future Growth Drivers
While Bitcoinās previous surge was fueled by the introduction of spot ETFs, analysts now see the potential creation of a U.S. national Bitcoin reserve as the next major catalyst.
The U.S. president recently signed an executive order to establish a task force group to explore this initiative. However, its implementation would require new legislation and a clear funding strategy. Possible options include selling part of the countryās gold reserves or issuing new government bonds to raise capital.
Another driver of Bitcoinās future growth is the sustained investment inflow into U.S. spot Bitcoin ETFs. While many institutional investors entered the market in the first year of ETF trading, others continue to expand their positions. Goldman Sachs, for example, has doubled its Bitcoin ETF holdings, increasing its investment by 100% to $1.57 billion compared to the previous quarter.
We believe the Crypto Task Force (led by David Sacks) is focused on delivering the National Bitcoin reserve, upon the direction of the President. The Trump administration also announced a sovereign wealth fund (SWF). We believe the SWF would consider key U.S. crypto companies/market leaders, as strategic assets to own,
analysts note.
One company drawing significant attention is Strategy (formerly MicroStrategy), which continues to expand its Bitcoin reserves. In early 2025, the company increased BTC purchases through senior convertible notes, allowing it to secure additional funding without selling existing assets. Currently, Strategy holds approximately $46 billion in Bitcoin.
From a macroeconomic perspective, Bitcoinās outlook remains positive, with private and sovereign investments continuing to grow steadily.
However, the crypto community is concerned that this trend goes against the principles of decentralization and the ideals of cypherpunks, who envisioned a financial system free from government influence. Instead, the reality is shifting in the opposite direction, with large corporations and institutional investors accumulating significant amounts of BTC, concentrating ownership in fewer hands.
Related: Trump Policies Spark $1.9 Billion Investment Boom in Crypto Funds
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