Despite recent volatility pushing Bitcoin (CRYPTO: BTC) below $110,000, experts say strong institutional adoption could drive a rebound by year-end.
What Happened: Jeff Park, head of ETF strategy at Bitwise Asset Management, said in an interview that $90 billion in institutional treasury company capital, combined with Fed rate cuts and ongoing regulatory tailwinds, will form a structural price floor that could trigger supply squeezes and short-covering rallies.
Park highlighted Bitcoin's unusual summer strength in 2024, which defied seasonal weakness thanks to stablecoin legislation and ETF inflows.
Several regulatory milestones reinforce this setup:
- SEC approval of in-kind ETF redemptions lowers friction and costs.
- BlackRock's expanding ETF options limits allows Wall Street to package sophisticated structured products around BTC.
Together, these moves institutionalize Bitcoin while letting firms monetize its volatility.
Park emphasized that Bitcoin tends to outperform in Q4–Q1, aligning with historical cycle peaks. He frames it as a commodity-like asset with asymmetric upside, poised to benefit most from institutional inflows.
Also Read: Bitcoin, Ethereum, XRP, Dogecoin Trade Sideways Ahead Of Labor Market Data
What's Next: Park sees the next frontier as sovereign Bitcoin reserves.
Durability, however, would require congressional approval, with Japan being the most likely developed market to adopt first.
Broader international coordination could pressure the U.S. to follow.
For Park, the takeaway is clear: in a world of fiat expansion and monetary manipulation, Bitcoin is the "scarcest, hardest asset", one that could eventually rival the U.S. dollar as the base of a new financial order.
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