After Bank of America's endorsement, Bitcoin enters the institutional era

Bitcoin has risen 1.23% in 24 hours, currently trading at $93,918.49. Behind this seemingly ordinary increase lies a fundamental shift in Wall Street’s attitude. US banks managing assets worth $1.7 trillion have officially allowed 15,000 wealth advisors to recommend a 1-4% Bitcoin allocation to clients starting January 5. This is not a test; it represents a systemic recognition of digital assets by traditional finance and is the core driver behind this wave of upward movement.

Wall Street’s Official Entry

The True Meaning of US Bank Policy

This policy from US banks is not just an expansion of investment advice but a layered message. First, it breaks the traditional financial “isolation” of Bitcoin, upgrading it from a “high-risk asset” to a “mainstream portfolio component.” Second, the 1-4% allocation ratio is symbolically significant in wealth management—large enough to influence billions of dollars in capital flows but not so large as to scare conservative institutional investors. Third, this is an “active recommendation” rather than a passive allowance, encouraging wealth advisors to proactively allocate rather than wait for client inquiries.

The first four ETFs recommended by US banks are BlackRock’s IBIT, Fidelity’s FBTC, Bitwise’s BITB, and Grayscale’s BTC—these are among the most liquid and largest spot Bitcoin products on the market. Choosing these products demonstrates US banks’ cautious approach, selecting the most mature and transparent tools.

The Actual Scale of Institutional Capital Inflows

Since the announcement of US bank policies, market reactions are reflected in data. According to the latest figures, Bitcoin spot ETFs have seen significant capital inflows over the past week, with BlackRock’s IBIT recording a single-day net inflow of $287 million on the first trading day of the year, setting a nearly three-month record.

From a macro perspective, the performance of the entire Bitcoin spot ETF market in the first five trading days of January is even more remarkable.

What lies behind these figures? Actual allocation actions by traditional financial institution clients. As US bank advisors begin actively recommending, and as Fidelity and BlackRock ETFs become core recommendations, billions of dollars in institutional funds are gradually but steadily entering the market.

Accelerating Corporate Treasury Strategies

Bitcoin Accumulation by Listed Companies

Institutional entry is not only reflected in ETF capital flows but also in direct allocations by listed companies. Strategy (formerly MicroStrategy) continued to add 1,287 BTC on January 4, pushing total holdings to 673,783 BTC. More importantly, the company increased its USD reserves by $62 million to $2.25 billion, indicating it is expanding its Bitcoin exposure through “dilution-free” methods like preferred stock financing, demonstrating a long-term and systematic allocation strategy.

Japanese listed company Metaplanet also warrants attention. On December 30, it invested $451 million to acquire 4,279 BTC, bringing its total holdings to over 35,102 BTC. Metaplanet’s strategy leverages the yen’s depreciation environment to complete low-cost financing arbitrage, reflecting that global listed companies are beginning to see Bitcoin as a strategic asset on their balance sheets.

According to the latest data, global listed companies (excluding mining firms) currently hold a total of 923,680 BTC, with a market value of approximately $85.78 billion, accounting for 4.62% of Bitcoin’s circulating supply. Notably, this proportion is continuing to rise, indicating that corporate-level Bitcoin allocations are accelerating.

Strategic Significance of Corporate Allocations

Why are listed companies so actively allocating Bitcoin? This is not speculation but a rational response to three realities. First, rising inflation expectations—against the backdrop of the Federal Reserve possibly slowing rate hikes—increases the risk of fiat currency devaluation, highlighting Bitcoin’s role as a scarce asset hedge. Second, considering financing costs, expanding Bitcoin exposure through low-cost financing during a relatively loose interest rate environment can optimize asset portfolios. Third, competitive pressure—when rivals are allocating Bitcoin, not doing so becomes a risk in itself.

Technical and Market Sentiment Resonance

Deleveraging and the Foundation for a New Rally

Since Q4 2025, the leverage in Bitcoin and Ethereum futures markets has decreased by nearly $30 billion. While seemingly negative, this data actually lays a solid foundation for a new rally. The market has completed a speculative “reset” of leverage, meaning future upward movement will be driven more by genuine institutional allocations rather than leveraged trading.

From a technical perspective, Bitcoin’s price has re-established support above the 50-day, 200-day moving averages, and the 200-day exponential moving average on the 4-hour chart. Confirmation of these key moving averages often signals a mid-term trend reversal. Additionally, 24-hour trading volume has increased by over 40%, indicating growing active participation—an important sign for sustainable price development.

Confidence Indicators in the Options Market

On Deribit, Bitcoin options also tell a story. Open interest in $100,000 strike call options expiring in January increased by approximately 420 BTC (nominal value of $38.8 million) in the past 24 hours. This suggests traders are confident in a short-term breakthrough of the key psychological level ($100,000), aligning with the broader institutional entry trend.

Key Points to Watch Moving Forward

Based on the current market structure, several key nodes merit ongoing observation. First, the actual impact of US bank policy implementation—ETF capital inflow data in the coming weeks will directly reflect the policy’s influence. Second, follow-up actions by other major financial institutions—US banks’ policies could set industry benchmarks, prompting more institutions to follow suit. Third, the sustainability of corporate allocations—whether Strategy and Metaplanet’s increases will inspire more listed companies to participate. Fourth, technical resistance levels—particularly the breakthroughs of the $90,000 and $100,000 psychological thresholds.

Summary

The 1.23% rise in Bitcoin may seem modest, but it signifies a deep structural change in the market. The US bank policy announcement, ongoing institutional capital inflows, and accelerated corporate treasury strategies are collectively weaving a new story: Bitcoin’s transition from a “risk asset” to a “mainstream asset” is no longer theoretical but a tangible reality. Early institutional entry is often the most stable phase, driven by genuine asset allocation needs rather than speculation. The key going forward is whether this institutional-level allocation can be sustained and whether it will trigger more traditional financial institutions to follow suit.