Bitcoin
THIS group increases Bitcoin exposure: What’s in it for BTC?
Today, businesses collectively hold more than 3% of all Bitcoin in circulation, led by five key players.
- BTC adoption by businesses has surged by more than 30% over the past year.
- How is this massive adoption changing the financial landscape?
Bitcoin [BTC] has been consolidating for three-days straight, with its price fluctuating between a defined price range of $56K — $59K.
Amid speculation from analysts that BTC could drop below the $51K support, a new trend has emerged, potentially increasing the likelihood of a price correction.
Could the corporate world be the next hidden catalyst for Bitcoin’s revival? AMBCrypto investigates.
Businesses are increasing BTC accumulation
In a post on X (formerly Twitter), a new study revealed a 30% surge in Bitcoin adoption by businesses in a single year.
For context, the report identified 52 public companies with Bitcoin holdings, a number that has increased by 40% over the past year.
According to AMBCrypto’ analysis of the report, a quieter yet significant trend is emerging.
Source : X
While much focus has been on individual investors, investment firms, and large corporations making headlines with multimillion-dollar BTC buys, small-scale businesses are steadily adding to the Bitcoin ecosystem.
Today, businesses collectively hold more than 3% of all Bitcoin in circulation – a remarkable 500% increase over the past few years.
Interestingly, businesses have swiftly surpassed governments in Bitcoin accumulation.
If this trend continues, businesses could soon rival ETFs in Bitcoin holdings, boosting Bitcoin’s financial significance.
Clearly, businesses are viewing Bitcoin as a store of value, effectively preserving wealth over time. However, can it endure volatility and retain its value?
Corporations have immense faith that it can
Interestingly, the report revealed a key trend : Bitcoin ownership among businesses is concentrated among the five largest holders.
Five companies – MicroStrategy, Block.one, Tether, BitMEX, and Xapo – hold 82% of all holdings, totaling 559K BTC.
Notably, MicroStrategy and Tether account for 85% of reported BTC purchases in early 2024, buying an average of 269 BTC per day since late 2022.
Source : X
In summary, substantial business holdings have been key in boosting BTC’s value, consistently pushing its price up despite macroeconomic upheaval.
That being said, BTC began September on a bearish note, with short positions dominating the derivative market and keeping BTC below $60K.
Given the report’s insight into Bitcoin being held by a few big business players, could they be causing the pullback?
MicroStrategy data signals…
On the 29th of April, MicroStrategy released its Q1 financial report, revealing it now holds 214,400 Bitcoin.
The company has acquired an additional 25,250 Bitcoin at a total cost of $1.65 billion, averaging $65,232 per coin.
Source : Dune
According to the chart above, MicroStrategy’s BTC holdings have surged over tenfold in the past four years, rising from 21,000 in early 2020 to 216,000 at press time.
Meanwhile, the United States government has maintained a watchful eye on its Bitcoin balance, regularly depositing BTC into exchanges.
In short, major businesses have held onto their Bitcoin despite short-term price swings – a clear bullish sign.
Read Bitcoin’s [BTC] Price Prediction 2024–2025
Adding to this optimism, the report emphasized the growing view of Bitcoin as a store of value, predicting business adoption could near 1 million by 2026.
Therefore, AMBCrypto predicts that Bitcoin may be approaching a price correction, though it ultimately depends on the actions of institutional investors and savvy traders.
