Fidelity Investments purchases 4,661 BTC as whales continue to load up on BTC

Asset management firm Fidelity Investment’s Fidelity Digital Assets increased its Bitcoin holdings on Wednesday, purchasing 4,661 BTC worth approximately $463 million. The accumulation came after the Fidelity asset management firm initiated several BTC sell-offs, including one earlier this week worth 1,210 BTC and another at the end of last year worth 2,140 BTC. 

A Santiment report has also indicated a growing confidence among BTC whales, leading to more BTC accumulation. The report suggested that BTC accumulation in wallets with more than 10 BTC is increasing. Santiment explained that the spike came after a stagnation since mid-December. 

The report also mentioned that some of the upcoming political and economic stories will influence the health of the crypto markets. Santiment first touched on the upcoming President Donald Trump’s inauguration on January 20. 

The crypto analytics platform also highlighted the upcoming Fed meeting, which will shed light on expected policies to curb inflation, including the Fed’s stance on rate cuts. Santiment also mentioned the Israel-Palestine ceasefire announced on January 15, which could fuel a positive reaction in crypto markets.

Market analytics platform CryptoQuant also revealed the growing BTC accumulation by institutional investors despite the massive dump on December 21, amounting to over 79,000 BTC. The platform explained that institutional investors have accumulated over 34,000 BTC over the past 30 days, showing a growing confidence for a bull run. 

BTC adoption rises among institutions like Fidelity and governments

A Fidelity Investment report detailing its crypto outlook for 2025 showed expectations of institutional and government BTC adoption increasing in 2025. The report explained that the current signs point toward the beginning of mass diffusion and adoption of crypto. Fidelity also commented that while the process might take years, 2025 will be a pivotal moment for the future of crypto adoption.  

The Fidelity asset management firm also mentioned that upcoming macroeconomic factors will fuel the expected adoption of BTC and crypto. Fidelity speculated that rising inflation in different countries, plunging fiat currency values, and fiscal deficits would fuel crypto allocation. 

Multiple countries, including the US, Brazil, Poland, and Russia, are exploring the establishment of BTC strategic reserves. The incoming pro-crypto Trump administration is also expected to set global standards, with crypto markets anticipating more crypto-friendly regulations. 

The Bitcoin Act of 2024, proposed by Senator Cynthia Lummis, is expected to be developed in 2025. The legislation is expected to fuel BTC adoption in the US. The proposed regulation also suggests the government continue purchasing approximately 1 million BTC over the next 5 years. If passed, the regulation would allow the US government to offload its gold reserves to obtain more funds for BTC accumulation. 

Institutional investors have likewise shown more interest in BTC since last year. Microstrategy led in BTC purchases, with the most recent purchase being 2,530 BTC earlier this week, bringing its holdings to 450,000. BlackRock has also purchased BTC significantly since its ETF approval last year, with the latest purchase being 318 BTC earlier this week.

Predictions have BTC price surging over $200,000 in 2025

Analysts have predicted that BTC will surpass $200,000 in 2025 due to the expected development in crypto policies and adoption. The CryptoQuant report mentioned that institutional BTC accumulation at lower prices was in anticipation of a price surge in 2025. The coin’s price has plunged over 7% this year, reaching the low price of $90,692 on January 13.

Asset management firms VanEck and Galaxy Digital predicted that BTC’s price would hit above $180,000 in 2025. Matrixport Head of Research, Markus Thielen, commented that the increasing interest in Bitcoin ETFs would boost the coin’s price above $160,000. 

Analysts from Standard Chartered, Bit Mining, and Maple Finance have predicted that the coin will cross above $200,000. The CoinShares Head of Research, James Butterfill, also expects that the US establishing a BTC strategic reserve will fuel the coin’s price more than the spike seen after BTC ETF approvals. 

Standard Chartered still warned of possible price corrections for BTC if the coin’s price drops below $90,000. One of the bank’s analysts, Geoff Kendrick, suggested that the plunge could lead to another 10% loss in the BTC price, reaching $80,000.

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