Bitcoin Struggles to Reach $100,000 Despite Institutional Demand

Bitcoin (BTC) has faced challenges in reclaiming the $100,000 level over the past 50 days, despite strong institutional demand. This price weakness is notable given the positive environment, including the executive order issued by President Donald Trump on March 6, which allows for BTC acquisitions under “budget-neutral” strategies. The order was intended to support the integration of Bitcoin into traditional financial systems, but the necessary infrastructure remains largely undeveloped.

On March 26, GameStop Corporation announced plans to allocate a portion of its corporate reserves to Bitcoin. The company, which had been on the brink of bankruptcy in 2021, successfully capitalized on a historic short squeeze and secured $4.77 billion in cash and equivalents by February 2025. This move by GameStop follows a trend among US-based and international companies adopting Bitcoin treasury policies, inspired by Michael Saylor’s strategy. For instance, the Japanese firm Metaplanet recently appointed Eric Trump to its strategic board of advisers, and the mining conglomerate MARA Holdings adopted a Bitcoin treasury policy to retain all BTC and increase exposure through debt offerings.

Despite these positive developments, there are underlying reasons for Bitcoin investors to sell their holdings. Gold, for example, is trading just 1.3% below its all-time high of $3,057, indicating that investors may be seeking safer havens. The US administration's pro-crypto stance following Trump’s election has not translated into broader adoption due to regulatory and integration challenges. The US spot Bitcoin exchange-traded fund (ETF) is limited to cash settlement, preventing in-kind deposits and withdrawals. A potential rule change under review by the US Securities and Exchange Commission could enhance tax efficiency, but this remains uncertain.

Banks primarily serve as intermediaries or custodians for cryptocurrency-related instruments, and the repeal of the SAB 121 accounting rule on Jan. 23 does not guarantee broader adoption. Traditional investment firms like Vanguard still prohibit clients from trading or holding shares of the spot Bitcoin ETFs, and administrators like BNY Mellon have restricted mutual funds’ exposure to these products. Many wealth managers and advisers remain unable to offer any cryptocurrency investments to their clients, even when listed on US exchanges.

The Bitcoin derivatives market lacks regulatory clarity, with most exchanges opting to ban North American participants and choosing to register their companies in fiscal havens. Despite the growth of the Chicago Mercantile Exchange (CME), it still accounts for only a fraction of Bitcoin’s futures open interest, while competitors benefit from fewer capital restrictions and less regulatory oversight. Institutional investors remain hesitant to gain exposure to Bitcoin markets due to concerns about market manipulation and a lack of transparency among leading exchanges. The fact that major exchanges have paid significant fines for potential anti-money laundering violations and unlicensed operations further fuels negative sentiment toward the sector.

Ultimately, the buying interest from a small number of companies, including GameStop, is not enough to push Bitcoin’s price to $200,000. Additional integration with the banking sector remains uncertain, despite more favorable regulatory conditions. Until then, Bitcoin’s upside potential will continue to be limited as risk perception remains elevated, especially within the institutional investment community.