Bitcoin Price Has Halved, So Why Are Institutions Scooping It Up?

▲ Bitcoin (BTC)

An analysis suggests that despite Bitcoin (BTC) having fallen by half from its all-time high, adoption by nations, institutions, and banks is experiencing unprecedented explosive growth, signaling the unfolding of a massive but largely unseen bull market.

According to cryptocurrency-focused outlet Bitcoinist on February 27 (local time), financial services firm River highlighted in a recent report the strong ecosystem expansion hidden behind Bitcoin’s price decline. River assessed that Bitcoin is currently permeating institutional finance and everyday life at an unparalleled pace, and that the results of this explosive adoption have not yet been fully reflected in market prices. The firm emphasized that there is effectively no bear market in Bitcoin adoption, as the market’s underlying fundamentals are compounding regardless of short-term price movements.

The most notable shift has been capital inflows at the national level. The report states that in 2025 alone, five new countries joined the ranks of Bitcoin-holding nations, including the sovereign wealth funds of Luxembourg and Saudi Arabia, the Czech National Bank, and governments in Brazil and Taiwan. This brings the total number of countries holding Bitcoin in some form—through state-led mining, asset seizures, or direct central bank exposure—to 23, an astonishing change that would have been difficult to imagine just a few years ago.

Traditional finance is also making significant moves. It has been found that 60% of the top U.S. banks are actively developing Bitcoin-related products for their clients. As the regulatory environment in the United States has become noticeably more favorable, financial institutions that were previously constrained by regulations are now finally able to offer Bitcoin custody and related services.

Institutional investors continue to buy at an impressive pace. Registered investment advisors have been net buyers of Bitcoin for eight consecutive quarters, channeling approximately $1.5 billion into spot Bitcoin ETFs each quarter over the past two years. In total, institutions—including corporations, governments, investment funds, and exchange-traded funds—accumulated 829,000 Bitcoins in 2025 alone. Behind this massive figure are millions of individual investors who gained exposure to Bitcoin for the first time through retirement accounts and brokerage platforms.

Notably, the largest buyers of Bitcoin in 2025 were ordinary corporations. Digital Asset Treasury (DAT) firms—companies that adopt Bitcoin as a core treasury strategy—led this corporate buying surge. Adoption within this group increased by 2.5 times compared to the previous year, serving as a strong pillar of support for the market.

Disclaimer: This article is for investment reference only, and no responsibility is taken for any investment losses resulting from decisions based on it. The content should be interpreted solely for informational purposes.