Bitcoin's Record Surge: Institutional Investment's Quiet Renaissance

Bitcoin's rise to a new record this week has reignited debates about institutional investors' role in its ascent. Analysts suggest their influence remains nascent, with significant room for growth. The cryptocurrency recently surpassed $123,000, fueled by expectations of pro-crypto policies from Washington.

Despite increased digital asset buzz, institutional demand, particularly from pension funds and long-term buyers, is still burgeoning, according to experts. Adrian Fritz from 21Shares highlights retail investors' dominance in crypto markets. Currently, less than 5% of spot bitcoin ETF assets are held by long-term investors.

The U.S. House of Representatives has cleared procedural hurdles on crypto legislation, signaling a potential boost for institutional investment. As public companies increase bitcoin holdings, analysts caution about potential risks if prices fall below $90,000, jeopardizing corporate treasuries.

(With inputs from agencies.)