According to Wall Street brokerage Bernstein, the recent surge in Bitcoin’s $BTC price, which currently stands at $74,244.92, is indicative of a significant transformation in the asset’s ownership dynamics amidst geopolitical tensions.
Last week, Bitcoin experienced an approximate 7% increase while ether (ETH) rose by around 9%, outperforming both gold and global stock indices as investors reacted to escalating international conflicts. Bernstein noted that this performance underscores how institutional investment is altering the landscape of cryptocurrency markets.
“We believe that the integration of Strategy’s treasury model along with ETFs has fundamentally changed Bitcoin’s ownership framework,” stated analysts led by Gautam Chhugani in their report released on Monday.
The firm known as Strategy has been likened to a “bitcoin central bank of last resort,” continuing its purchasing spree even during market downturns. According to a filing made on Monday, they have maintained their weekly buying trend and acquired approximately $1.57 billion worth of $BTC.
Under the leadership of Executive Chairman Michael Saylor, Strategy purchased 22,337 bitcoins at an average price of $70,194 each. This brings their total holdings to 761,068 $BTC, with an average acquisition cost per coin standing at $75,696.
Furthermore, Strategy has broadened its equity financing approach through its STRC product which provides investors with high-yield returns linked to the Secured Overnight Financing Rate (SOFR), resulting in increased trading volumes. This added liquidity facilitates further bitcoin acquisitions via market offerings.
In addition to this activity, spot bitcoin exchange-traded funds (ETFs) have seen inflows totaling about $2.1 billion over the past three weeks; consequently elevating ETF ownership to roughly 6.1% of total bitcoin supply. Analysts observed that these investment vehicles are increasingly attracting allocations from wealth managers and sovereign funds alike.
While retail investors have predominantly been net sellers recently, long-term holders continue to dominate the market landscape; approximately 60% of all bitcoins have remained untouched for over a year—indicating many view it as a long-term store value according to Bernstein’s findings.
The recent strong performance by Bitcoin amid geopolitical turmoil has reignited discussions regarding its status as “digital gold.” Although it lagged behind precious metals for much part last year; its recent gains during periods marked by global uncertainty suggest some analysts believe it may be evolving into more than just an asset but rather acting as a geopolitical hedge—though this comparison remains debated among experts.
Bernstein also pointed out that for equity investors looking for exposure related directly tied with Bitcoin’s potential upside; investing in Strategy (MSTR) presents itself as a high-beta option currently trading around a 14% discount relative to its net asset value based on basic shares issued.
The leading cryptocurrency was recorded trading up by about 4.4%, hovering near $73,900 at press time while ether—the second-largest digital currency—was up approximately 8.4%, priced at $2,273.
Read more: CEO of crypto investment firm Keyrock says bitcoin is undervalued entering ‘transition year’