Bitcoin Hits $111K as Companies Buy Record 159K BTC
Bitcoin just smashed through $112,000, setting a new all-time high as public companies gobbled up 159,107 BTC last quarter. This historic buying spree comes with the U.S. dollar crumbling to 21-year lows, making Bitcoin look like gold 2.0 to big investors.
Institutions Fuel the Fire
Public companies are betting big on Bitcoin, adding over $17 billion worth last quarter alone. That brings their total stash to 847,000 BTC – meaning they now control 4% of all Bitcoin that will ever exist. A whopping 46 new companies joined the Bitcoin club last quarter, showing this is no flash in the pan. Strategy remains king of the Bitcoin holders with 597,000 BTC, but newcomers like GameStop are jumping in too. Bitget reports this corporate stampede shows no sign of slowing.
Dollar Weakness = Bitcoin Strength
The U.S. Dollar Index just had its worst start to a year since 1973, dropping over 10%. That’s like rocket fuel for Bitcoin. As the dollar weakens, companies see Bitcoin as their financial shield. "Bitcoin is increasingly behaving like a fiat debasement hedge," says Zerocap analyst Emir Ibrahim. This trend explains why Bitcoin keeps climbing even when stocks dip. Proactive Investors notes JPMorgan now let's clients buy Bitcoin, a stunning U-turn from crypto-skeptic CEO Jamie Dimon.
Supply Shock Brewing
Bitcoin's secret weapon? There's less and less available to buy. Exchange reserves just hit record lows as investors yank coins into private wallets. Over 121,000 BTC vanished from exchanges last month alone. At the same time, Bitcoin ETFs keep sucking up supply, with over 1.4 million BTC now locked in these funds. This double whammy – shrinking supply and booming demand – is why analysts like Standard Chartered see Bitcoin hitting $200,000.
What Comes Next
Short-term, Bitcoin might dip to $106,200 to "grab liquidity" before its next big jump. But the long-term picture glows: decreasing exchange reserves, pro-Bitcoin regulations like the GENIUS Act clearing hurdles, and states like Pennsylvania considering Bitcoin for public funds. As eToro’s Josh Gilbert puts it: "This is the first real bull market where institutional participation is front and centre." With companies and ETFs buying a football field’s worth of Bitcoin every day, this rally’s backbone looks solid.
