Institutional Investors Fuel Bitcoin's Quiet Comeback

Bitcoin has shown signs of recovery in recent weeks, with its price rising nearly 2% to $113,224 from a recent low of $107,000. This upward movement is attributed to strong buying pressure and increased institutional interest, as major investors continue to accumulate Bitcoin holdings. According to the latest market data, the cryptocurrency has seen a resurgence in demand, particularly from large-scale investors such as Strategy and Bitcoin Standard Treasury, both of which have expanded their Bitcoin portfolios significantly [1].

The U.S. GENIUS Act has also played a role in boosting Bitcoin’s credibility, contributing to a heightened global sentiment toward cryptocurrencies. Analysts have cited this favorable regulatory environment as a potential driver for Bitcoin’s continued upward trajectory. With only about 5% of the total Bitcoin supply remaining to be mined, the scarcity factor is further reinforcing the perception of Bitcoin as a valuable long-term investment [1].

In terms of institutional investment, Strategy leads the pack, holding 636,505 BTC. Meanwhile, Bitcoin Standard Treasury has added over 30,000 BTC to its holdings, reflecting a growing trend among publicly traded companies to position Bitcoin as a strategic financial asset. These moves have been particularly notable in the wake of Bitcoin’s recent volatility, as companies see potential for both capital appreciation and diversification of their portfolios [1].

Bitcoin’s performance has outpaced that of Ethereum in the first week of September, with BTC seeing a net inflow of $246 million from U.S. spot ETFs, while Ethereum experienced a $787 million outflow. Bitcoin’s price surged 2% over the week, with the cryptocurrency trading between $107,250 and $113,390. The ETF inflows indicate a shift in investor sentiment toward Bitcoin, as market participants favor it over Ethereum amid broader macroeconomic uncertainty [2].

The upcoming U.S. Federal Reserve interest rate decision is another key factor influencing Bitcoin’s near-term outlook. Market data indicates that the VIX, a gauge of market volatility, has reached a premium in October futures contracts, suggesting that heightened uncertainty is expected after the Fed’s September 17 decision. Although traders are currently discounting risk ahead of the meeting, the anticipation of post-decision volatility could impact Bitcoin’s price movements. Historically, Bitcoin has exhibited a strong correlation with broader stock market trends and volatility, suggesting that a potential downturn in equities could spill over into the cryptocurrency market [4].

Looking ahead, analysts are cautiously optimistic about Bitcoin’s prospects in the remainder of 2025. While previous forecasts projected prices reaching as high as $150,000, the more realistic expectation is that Bitcoin could climb to around $130,000, driven by interest rate cuts and economic tailwinds. The combination of favorable regulatory developments, institutional adoption, and a recovering macroeconomic landscape is creating a supportive environment for Bitcoin to continue its upward movement [1].

Source: [1] What Does BTC's Recovery Mean for Bitcoin Price Predictions? (https://www.fxleaders.com/news/2025/09/05/what-does-btcs-recovery-mean-for-bitcoin-price-predictions/) [2] Bitcoin vs Ethereum Weekly Showdown: Price Moves, Major Wins and Key News (https://coingape.com/trending/bitcoin-vs-ethereum-weekly-showdown-price-moves-major-wins-and-key-news/) [3] ETH/BTC Golden Cross Signals Potential 250% Rally Setup (https://www.fxempire.com/forecasts/article/ethereum-price-forecast-eth-btc-golden-cross-signals-potential-250-rally-setup-1546953) [4] BTC, Stocks News: Calm Ahead of Fed Rate Cut, Storm Later (https://www.coindesk.com/markets/2025/09/08/market-storm-likely-after-september-fed-interest-rate-cut-vix-suggests) [5] Fed Rate Cut Hopes Rise: Bitcoin Price Doesn't Follow (https://beincrypto.com/fed-rate-cut-hopes-rise-bitcoin-price-doesnt-follow/) [6] Could an Interest Rate Cut from the Fed Help or Hurt Bitcoin? (https://www.nasdaq.com/articles/could-interest-rate-cut-fed-help-or-hurt-bitcoin)