The Bitcoin Rally – Financial Times

This article dives into the structural and regulatory underpinnings of Bitcoin’s powerful 2025 rally, which saw BTC surge past $120,000:

🔍 Key Highlights:

1. U.S. Regulation Is the Driving Force
   • The Clarity Act and Genius Act are redefining the digital asset landscape.
   • These laws distinguish Bitcoin and Ethereum as commodities, not securities.
   • This has made institutional investors more confident about entering the market.
2. Mainstream Political Support
   • Lawmakers from both U.S. parties are now vocal supporters of crypto.
   • Donald Trump publicly supported a Bitcoin Reserve strategy for the U.S.
   • States like Texas and Wyoming are acquiring Bitcoin for public treasuries.
3. Spot Bitcoin ETFs Accelerate Inflows
   • ETFs from BlackRock, Fidelity, and ARK Invest are attracting billions in AUM.
   • Bitcoin ETF daily volumes rival gold and tech stocks.
   • FT estimates that ETFs now account for 9–12% of total BTC supply.
4. Institutional Adoption Is the New Norm
   • Insurance firms, sovereign wealth funds, and pensions are buying BTC.
   • Corporate treasuries (e.g., MicroStrategy, Tesla, Oracle) are increasing holdings.
   • New custody tools and clearer accounting rules are removing barriers.
5. A Cultural Shift in Finance
   • The article suggests the market is witnessing a “Bitcoinification” of mainstream finance.
   • Bitcoin is now framed more as a strategic reserve asset than a speculative one.

📉 Risks & Warnings:

• FT warns about potential over-leverage in ETF derivatives.
• Crypto crime and volatility remain systemic threats.
• Long-term valuation depends on policy continuity, not just hype.