Bitcoin News Today: Institutions Triple Bitcoin Holdings Amid Volatility, Cement Abu Dhabi's Crypto Hub Ambitions

Bitcoin's long-term appeal remains strong despite recent volatility, with a new 10-year model suggesting investors may not need to obsess over entry timing. The simulation, conducted by researcher Sminston With, projects that even if an investor buys Bitcoin (BTC) at $94,000 or 20% above that price and sells 20% below the median power-law trend in 2035, they would still achieve a 300% return after a decade of annual 10% withdrawals. The most favorable outcomes—ranging from $1.15 million to $1.47 million—arise from purchasing 20% below $94,000, underscoring the asset's resilience to imperfect timing according to the model.

The model's findings align with broader macroeconomic optimism. Current global liquidity, estimated at $113 trillion, far exceeds levels during prior cycles, creating a more favorable backdrop for risk assets. Meanwhile, Bitcoin's price appears undervalued relative to liquidity trends. A liquidity gap metric from JV Finance shows BTC trading at -1.52 standard deviations below its fair value, a rare deviation historically linked to long-term upside potential. The model suggests a $170,000 fair value for Bitcoin based on these conditions.

Despite these bullish signals, Bitcoin has faced a sharp correction in late 2025, dipping below $90,000 and leaving the average 2025 buyer underwater by 13%. The drawdown mirrors April's decline in percentage terms but has lasted only half as long. Analysts caution that a breakdown below $93,000 could expose a liquidity gap near $89,600, though some argue the broader market selloff offers accumulation opportunities .

Institutional interest in Bitcoin continues to grow, with Abu Dhabi's Mubadala Investment Co. tripling its holdings in the months before the recent crash. The fund, part of a $1.7 trillion sovereign wealth complex, has positioned Abu Dhabi as a global crypto hub, including a $2 billion stake in Binance. Such moves highlight confidence in Bitcoin's long-term role, even as retail investors grapple with short-term volatility according to Bloomberg.

New projects are also capitalizing on the crypto landscape. Bitcoin Munari (BTCM) launched its presale at $0.35, leveraging Solana's infrastructure to build a Layer-1 blockchain by 2027. The project's structured distribution model—selling 53% of its 21 million token supply across ten fixed-price rounds—aims to balance institutional-grade infrastructure with accessible participation according to the announcement.

Regulatory and political developments further shape Bitcoin's trajectory. The U.S. government shutdown in late 2025 temporarily choked liquidity, while the proposed CLARITY Act could redefine oversight by shifting crypto regulation to the Commodity Futures Trading Commission (CFTC). Analysts remain divided on Bitcoin's near-term price, with forecasts ranging from $120,000 to $170,000, depending on liquidity shifts and legislative outcomes.