Analyst Highlights Bitcoin Price Shift from “Dead Asset” to $100K

Bitcoin price journey from $40,000 to nearly $100,000 in one year has fundamentally changed market sentiment and institutional participation.

CryptoQuant data shows that ETFs, governments, and MicroStrategy now control 31% of all known Bitcoin holdings.

With Bitcoin trading at $98,400, this shift shows not just a price increase but also a major change in how traditional finance views cryptocurrency.

From skepticism to FOMO: Bitcoin Price 2024 sentiment shift

The stark contrast in Bitcoin sentiment between consecutive Christmas seasons highlights the cryptocurrency’s change in public perception.

As noted by analyst Michaël van de Poppe, last year’s holiday conversations dismissed Bitcoin as a dying asset at $40,000, with skeptics questioning its relevance.

Just twelve months later, at nearly $100,000, the same skeptics are eagerly seeking investment advice. This is driven by news of potential government adoption and Trump’s proposed policies.

– Advertisement –

This shift is supported by Bitcoin price performance metrics, showing a 126.6% gain over the past year despite recent volatility. The cryptocurrency has maintained strong momentum even through short-term corrections, with data showing a 2.7% gain over the past month despite a 5.4% dip in the past week.

The change in narrative from “Bitcoin is dead” to mainstream acceptance has been particularly accelerated by the growing interest in Bitcoin’s potential role in government treasury management.

The transition shows a broader market maturation, where previous skeptics, particularly from traditional finance backgrounds, have shifted from dismissing Bitcoin to actively seeking exposure.

Institutional dominance reshapes Bitcoin ownership

The Bitcoin holder landscape has made a fundamental change in 2024, according to CryptoQuant’s latest analysis. ETFs, governments, and corporate treasuries like MicroStrategy now control 31% of all known Bitcoin holdings, making a major increase from 14% in December 2023.

CryptoQuant’s CEO, Ki Young Ju, emphasizes the importance of distinguishing between total supply and known holdings in this analysis. The data specifically tracks identified Bitcoin holders, including exchanges, miners, ETFs, governments, and public companies.

The distribution shows particular growth in three key segments: institutional funds through ETFs, government holdings, and continued accumulation by MicroStrategy, which has maintained its position as the largest corporate Bitcoin holder.

Year-over-year comparison reveals shrinking exchange balances while institutional holdings have grown substantially. This transition suggests a maturing market structure where long-term holders and regulated institutions are gradually replacing retail-focused trading platforms as primary Bitcoin custodians.

Market maturation and future outlook

Bitcoin’s performance metrics show this institutional change, with the price maintaining strong upward momentum despite short-term volatility. Trading at $98,400, Bitcoin shows resilience through various market cycles, supported by a 126.6% yearly gain and continued institutional accumulation.

The short-term fluctuations, including a 5.4% weekly decline, appear minimal against the backdrop of sustained institutional interest.The changing narrative around Bitcoin as a treasury asset has gained particular momentum with speculation about Trump’s potential policies.

This shift from viewing Bitcoin as a speculative instrument to considering it a legitimate treasury reserve asset marks a crucial market maturity move.