Video | Weekly Market Analysis: When tech companies start hoarding Bitcoin, what is different about the new bull market?

Compiled by: Yuliya, PANews

In the era of the intersection of encryption and AI, the truly important stories are often hidden outside the hustle and bustle. In order to find these overlooked truths, PANONY and Web3.com Ventures jointly launched the English video program "The Round Trip". Co-hosted by John Scianna and Cassidy Huang, this episode will focus on the different driving forces behind Bitcoin's return to its historical highs: large-scale institutional capital entry is replacing retail enthusiasm, and the shaking of confidence in the US dollar and friendly regulatory signals have jointly created a "perfect storm."

*Note: This video was released on July 12, and some data and dynamics may differ from the current situation.

tl;dr

Bitcoin performance: breaking through the historical peak and continuing to rise, not dominated by retail investors, institutional capital becomes the core driving force.
U.S. stocks linked: Nasdaq and S&P 500 hit record highs, the Dow Jones Industrial Average approached its high, and the market entered a comprehensive risk appetite mode.
Policy background: The United States passed the "Big, Beautiful Act", expanded fiscal spending and debt, and weakened the long-term credit of the US dollar (Moody's downgraded the US debt rating in May).
Sustainability of the rally: The rally is seen as more solid than previous speculative cycles due to corporate balance sheet and regulatory support, but a correction is still possible. The key is whether institutions can form price support.
Companies holding Bitcoin: Software company Figma holds approximately 5% of its balance sheet in Bitcoin. Motivations include diversification, value-added potential, and brand differentiation, but Bitcoin is not suitable for all companies and risk tolerance and strategic goals need to be considered.
Bitcoin attributes: Bitcoin exhibits mixed characteristics. It rises like technology stocks during risk appetite cycles, and has safe-haven properties like gold during crises (such as the recent trade war). This duality can be both an advantage and a weakness.
Potential risks: An unexpected rate hike by the Federal Reserve (JPMorgan Chase CEO Jamie Dimon said there is a 40-50% probability), tighter regulation or geopolitical "black swan" events may interrupt the rally, but these risks are not imminent at present and funds continue to flow in.
Institutional capital inflow:
- 1) In June, more than 250 companies announced an increase in their Bitcoin holdings, purchasing a total of 68,000 BTC.
- 2) Last week, 54 entities added 8,434 BTC to their holdings, including design software giant Figma (which holds $70 million in Bitcoin ETF and plans to purchase another $30 million).
- 3) Bitcoin ETFs saw net inflows of $1.6 billion from July 6 to July 11, including $1.18 billion on July 10 (the second highest in history).
Macro-favorable factors
- 1) The crisis of confidence in the US dollar: fiscal expansion exacerbates inflation concerns, and investors turn to scarce assets (Bitcoin has a fixed supply of 21 million coins, which is more scarce than gold).
- 2) Risks eased: geopolitical conflicts cooled down (the situation between Israel and Palestine stabilized, and there was no regime turmoil in Iran); inflation data in Europe and the United States were unexpectedly mild.

Regulation turns friendly
- 1) US "Crypto Week": The House of Representatives will review key bills such as the stablecoin framework and market structure this week.
- 2) Personnel signal: Former Bitfury executive Jonathan Gould is appointed as the head of the Office of the Comptroller of the Currency (OCC), indicating a loosening of policies.