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Institutional Bitcoin buying surged in Q1 2025, driven by inflation concerns, accounting changes, and corporate treasury strategies.
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Geopolitical tensions and tariff news continue to trigger sharp market volatility, influencing BTC’s price trajectory.
Following the prediction “Will BTC Hit Six Figures?” in the Bitcoin Q1 2025 Forecast by CNF, the first quarter of 2025 witnessed a remarkable surge in institutional Bitcoin acquisitions, with major corporations significantly boosting their holdings.
For the record, Tether, the leading stablecoin issuer, added 8,888 BTC since January, elevating its total Bitcoin reserves to over 100,000 BTC. Similarly, Metaplanet, a publicly traded Japanese firm, expanded its Bitcoin portfolio from 1,762 BTC in December 2024 to 4,046 BTC by March 2025.
Strategy, formerly known as MicroStrategy, continued its aggressive accumulation strategy, purchasing an additional 53,396 BTC during this period.
In this article, we focus on the positive pattern without disregarding the potential for downturns. Let’s see—for example, despite previous volatility when BTC fell below $75K (as Margex reported in a tweet on April 7), it has since shown notable recovery.
Much better!
Trade $BTC on Margex now: https://t.co/eNnBRRAvwa pic.twitter.com/v9HPmxLiNW
— Margex (@Margexcom) April 9, 2025
Driving Factors Behind the Accumulation
As updates reported, several factors have fueled this institutional enthusiasm for Bitcoin. The persistent depreciation of fiat currencies, notably the Japanese yen, has prompted companies like Metaplanet to view Bitcoin as a hedge against inflation. Additionally, Bitcoin’s limited supply, capped at 21 million coins, enhances its appeal as a store of value.
Furthermore, the Financial Accounting Standards Board (FASB) introduced new rules in January 2025, allowing companies to report unrealized gains from digital assets as income—making Bitcoin a more attractive asset for corporate treasuries.
Impact of Market Volatility and Geopolitical Tensions
Despite the bullish trend in Q1, the landscape shifted in early April. On April 4, 2025, President Donald Trump announced extensive reciprocal tariffs, leading to significant market volatility. In response, Bitcoin’s price experienced a sharp decline, dropping below $75,000.
According to Barrons.com, this downturn was part of a broader market reaction, with the S&P 500 futures also witnessing substantial losses. Analysts suggest that escalating trade tensions and potential Federal Reserve interest rate adjustments could further influence Bitcoin’s price trajectory in the coming months.
Current Market Conditions
As of now, Bitcoin’s price stands at approximately $82,120, reflecting an increase of 7.05% in the past day and a slight decrease of 1.40% in the past week. This reflects a recovery from the lows experienced earlier in the month but remains indicative of the market’s sensitivity to geopolitical developments.
Lastly, as the broader cryptocurrency market continues to navigate these challenges, investors are closely monitoring policy changes and economic indicators to inform their strategies. See BTC price chart below.
