Bitcoin as a Store of Value in the Post-Dorsey Era: Institutional Adoption and Macroeconomic Tailwinds

The post-Jack Dorsey era-marked by his departure from Twitter (now X) in 2021-signaled a pivotal shift in Bitcoin's narrative. While retail speculation once dominated the cryptocurrency's price cycles, institutional adoption has since emerged as the primary driver of its store-of-value (SoV) legitimacy. By 2025, Bitcoin's institutional ownership had surged to over 2.2 million BTC, with corporations, pension funds, and asset managers treating it as a core balance sheet asset rather than a speculative play, according to a 2025 Coinbase survey. This transformation, fueled by regulatory clarity and macroeconomic tailwinds, has redefined Bitcoin's role in global finance.

Institutional Adoption: From Skepticism to Strategic Allocation

The approval of spot Bitcoin ETFs in early 2024 by the U.S. Securities and Exchange Commission (SEC) catalyzed a seismic shift. BlackRock's IBIT alone attracted over $50 billion in assets under management within months, outpacing gold ETF inflows and signaling a tectonic reallocation of capital, according to a PowerDrill analysis. According to the 2025 Coinbase survey, 75% of institutional investors plan to increase their digital asset holdings, with 59% targeting allocations exceeding 5% of their assets under management. This trend is not merely speculative: corporations like MicroStrategy have leveraged low-interest debt to accumulate Bitcoin as a strategic reserve asset, hedging against fiat devaluation and geopolitical risks, as noted in a Kenson Investments report.

Structural changes in Bitcoin's ownership have also stabilized its price dynamics. Institutional investors, prioritizing long-term value preservation over short-term trading, have reduced market volatility. As noted in the PowerDrill analysis, Bitcoin's correlation with traditional assets like the Nasdaq 100 reached 0.87 during periods of heightened macroeconomic uncertainty, reflecting its integration into diversified portfolios.

Macroeconomic Tailwinds: Inflation Hedge and Global Uncertainty

Bitcoin's fixed supply of 21 million coins positions it as a natural hedge against inflation and currency devaluation. In 2025, as central banks grappled with post-pandemic inflation and the Federal Reserve signaled rate cuts, Bitcoin's price surged above $110,000-a level last seen during the 2021 retail frenzy, as reported in a BreakingCrypto article. This resilience underscores its appeal in an era of monetary expansion and geopolitical tensions, particularly between the U.S. and China.

Moreover, Bitcoin's low correlation with traditional asset classes-averaging 0.15 against the S&P 500-makes it a critical diversification tool. A report by Kenson Investments highlights that Bitcoin's SoV narrative is reinforced by its ability to retain value during equity market corrections, a trait historically associated with gold.

Challenges and the Road Ahead

Despite these tailwinds, Bitcoin's journey as a mainstream SoV is not without hurdles. Regulatory uncertainty, particularly in the U.S. and EU, remains a wildcard. Additionally, its historical volatility-evidenced by a $126,000-to-$104,000 correction in October 2025-tests the patience of even the most bullish investors (reported in the BreakingCrypto article). However, the growing alignment between institutional strategies and Bitcoin's scarcity model suggests that these challenges will be mitigated over time.

Conclusion

Bitcoin's evolution into a store of value is no longer a fringe hypothesis but a structural reality. Institutional adoption, driven by regulatory clarity and macroeconomic imperatives, has transformed it into a regulated, liquid, and strategically allocated asset. While challenges persist, the confluence of fixed supply, diversification benefits, and institutional confidence positions Bitcoin to rival traditional SoV assets in the decades ahead.