The Bitcoin bull market is far from finished. According to a recent report from Wall Street investment firm Bernstein, a powerful combination of pro-crypto policies, institutional adoption, and macroeconomic tailwinds is setting the stage for a new wave of price appreciation in both Bitcoin and related digital asset equities.
With multiple catalysts on the horizon, investors may want to reconsider their exposure to the leading cryptocurrency—especially as confidence grows around regulatory clarity and long-term value proposition.
👉 Discover how global financial shifts could accelerate Bitcoin’s next rally.
How ETF Approvals and Policy Shifts Fueled the Current Rally
Bernstein analysts trace the beginning of this bull cycle back to the fourth quarter of 2023, when anticipation mounted over the U.S. Securities and Exchange Commission (SEC) approving spot Bitcoin exchange-traded funds (ETFs). This regulatory breakthrough sparked a surge in investor interest, pushing Bitcoin’s price from around $25,000 to $46,000.
Once the first spot Bitcoin ETFs launched in early 2024, capital inflows intensified. Prices climbed further, reaching $74,000 before entering a consolidation phase that lasted several months.
However, the most significant turning point came in November 2024, when Donald Trump won the U.S. presidential election. His pro-digital asset platform reignited market enthusiasm. Trump pledged to make America the “global crypto capital” and proposed establishing a national Bitcoin reserve, along with implementing more favorable regulations for digital assets.
These policy signals triggered renewed momentum. By Inauguration Day in January 2025, Bitcoin hit an all-time high of $109,000—underscoring how deeply government actions can influence market sentiment and valuation.
The National Bitcoin Reserve: A Game-Changer on the Horizon?
Bernstein emphasizes that the next leg of the bull market is already taking shape, driven by structural developments rather than speculative hype.
One of the most closely watched initiatives is the formation of a U.S. strategic Bitcoin reserve, spearheaded by David Sacks—the newly appointed “Crypto Czar” leading the White House’s Crypto Task Force. The idea has gained traction within administration circles and could be implemented through two primary avenues:
- Repurposing seized Bitcoin holdings: The U.S. government currently holds approximately $20 billion worth of confiscated Bitcoin from illicit activities. Redirecting these assets into a national reserve would not only strengthen balance sheets but also send a powerful signal about Bitcoin’s legitimacy as a store of value.
- Direct purchases via federal funding: While direct acquisition by the Federal Reserve might require congressional approval, alternative financing methods—such as issuing debt or partially monetizing gold reserves—could enable large-scale Bitcoin accumulation without immediate fiscal strain.
Such a move would fundamentally alter Bitcoin’s market dynamics. If the U.S. leads the way, other nations may follow, creating a ripple effect of sovereign demand.
👉 See how institutional adoption could redefine Bitcoin’s role in global finance.
Additional Catalysts Powering the Next Phase
Beyond policy momentum, Bernstein identifies several key drivers that are accelerating institutional and retail adoption:
1. Sovereign Wealth Fund Participation
Abu Dhabi’s Mubadala Investment Company made headlines by allocating $437 million into spot Bitcoin ETFs—an unmistakable sign that global sovereign wealth funds are warming up to digital assets.
2. Wall Street Giants Increasing Exposure
Financial heavyweights like Goldman Sachs and Barclays have ramped up their positions in Bitcoin ETFs. Notably, veteran investor Paul Tudor Jones continues to advocate for Bitcoin as a hedge against inflation and monetary debasement, with his fund increasing its ETF holdings.
3. Corporate Treasury Adoption Continues
Strategy (formerly MicroStrategy) acquired an additional 7,633 BTC for $742 million, bringing its total holdings to 478,740 BTC—valued at approximately $46 billion. This sustained corporate accumulation reinforces confidence in Bitcoin’s long-term store-of-value narrative.
4. Strong ETF Inflows Signal Sustained Demand
Year-to-date 2025, spot Bitcoin ETFs have attracted nearly $5 billion in net inflows. Bernstein projects total annual inflows could reach **$60 billion**, reflecting growing trust in regulated investment vehicles.
5. Regulatory Clarity Removes Barriers
The SEC’s withdrawal of Staff Accounting Bulletin (SAB) 121 removes a major obstacle for traditional financial institutions. By allowing banks to offer crypto custody services without excessive capital charges, this change paves the way for broader integration of digital assets into mainstream finance.
Bitcoin vs. Gold: The Long-Term Value Proposition
Bernstein draws a compelling comparison between Bitcoin and gold—a traditional safe-haven asset.
Currently:
- Bitcoin’s market cap: ~$2 trillion
- Gold’s market cap: ~$18 trillion
Despite its volatility, Bitcoin’s fixed supply (capped at 21 million coins), portability, and increasing institutional acceptance position it as a viable competitor to gold as a macro hedge.
If even a fraction of gold’s market value migrates toward Bitcoin over the coming decade, the upside potential is substantial—potentially placing Bitcoin in the multi-trillion-dollar valuation range.
Core Keywords:
- Bitcoin bull run
- National Bitcoin reserve
- Spot Bitcoin ETF
- Institutional adoption
- Cryptocurrency policy
- Bitcoin price prediction
- SAB 121 repeal
- Crypto investment
Frequently Asked Questions (FAQ)
Q: Is the Bitcoin bull market really still ongoing?
A: Yes. While short-term corrections occur, Bernstein argues that structural catalysts—including ETF adoption, regulatory progress, and potential sovereign holdings—are fueling a new phase of growth.
Q: What is a national Bitcoin reserve?
A: It refers to a government-backed initiative where a country holds Bitcoin as part of its strategic reserves—similar to how gold is currently held by central banks.
Q: How does the repeal of SAB 121 impact Bitcoin?
A: By removing punitive capital requirements for banks offering crypto custody, the repeal encourages traditional financial institutions to enter the space, boosting legitimacy and accessibility.
Q: Can sovereign wealth funds really influence Bitcoin prices?
A: Absolutely. Mubadala’s $437 million investment demonstrates growing interest among state-backed investors. Wider adoption could create sustained buying pressure.
Q: Why compare Bitcoin to gold?
A: Both serve as inflation hedges and non-sovereign stores of value. With a much smaller market cap, Bitcoin has significant room to grow if it captures even a small share of gold’s investor base.
Q: Should I invest based on these predictions?
A: This article provides informational insights only. Always conduct independent research and consult a financial advisor before making investment decisions.
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