The cryptocurrency market reached a new peak, touching a total capitalisation of $3.84 trillion, surpassing the previous record of $3 trillion in 2021. This explosive growth of 92% since September 2024 underlines the renewed interest in the sector, fuelled mainly by the rise of Bitcoin, now above $100,000. Bitcoin’s role is pivotal: with a market share of nearly $2 trillion, the king of cryptocurrencies continues to catalyse the attention of institutional and private investors.
Institutional interest has found momentum in Bitcoin ETFs, which have recorded positive flows for six consecutive weeks, signalling a growing appetite for crypto exposure. Ethereum also contributed significantly, surpassing $4,000 and recording record inflows. Market dynamics highlight an evolving landscape, where Bitcoin and the major altcoins are emerging as strategic assets for multi-asset portfolios.
The institutional approach is further reinforced by recommendations such as that of BlackRock, which suggests a 2% allocation in Bitcoin for multi-asset portfolios. This positioning not only recognises Bitcoin as a store of value, but underlines its potential to diversify and protect investments in an increasingly complex market environment. In parallel, the corporate adoption of Bitcoin, which had found a boom in 2021 with companies such as MicroStrategy and Tesla, seems to be making a comeback. Marathon Digital, for example, increased its reserves with the purchase of 12,000 BTC, while MicroStrategy recently added 21,000 BTC to its portfolio, consolidating its Bitcoin-focused strategy.
The new growth trajectory is also aided by regulatory improvements. Obstacles that had held back corporate adoption, such as unfavourable tax treatment in the US, have been partially removed, making Bitcoin a more attractive option for CFOs. Moreover, adoption could accelerate further with the possible introduction of clearer regulations by the new US administration.
Instead, Microsoft shareholders this week rejected a proposal to hold BTC reserves. Soon after, Bitcoin rebounded with a $1.6 billion liquidation event on Monday. We discuss this in more detail in our in-depth article and with very peculiar exchange movements.
In this context, Coinbase stands out as a barometer of the market. Despite a daily drop of 8%, the stock has gained over 80% since the beginning of the year, thanks to Bitcoin’s rally and record trading volumes. Analysts are predicting promising prospects for Coinbase, with an estimated turnover of USD 8.9 billion by 2025. This optimism reflects investors’ confidence in a burgeoning crypto ecosystem.
