The Bitcoin futures market is currently signaling renewed optimism, despite a recent decline in spot prices. This market behavior suggests the flagship cryptocurrency could be poised for another upward rally, even as liquidations continue to affect traders using high leverage.
On Thursday morning, Bitcoin slipped below the $105,000 mark, cooling from its previous all-time high of $112,000. Despite this price adjustment, Bitcoin’s market dominance remains near record levels, underscoring sustained institutional interest in the asset.
Several major corporations have taken cues from Strategy’s early Bitcoin adoption, amassing significant holdings over the years. According to Bitcoin Treasuries, 223 entities collectively hold approximately $360 billion worth of the cryptocurrency.
Companies like Block and Tesla have also aligned with this strategy. Recently, SolarBank, a Canadian solar energy firm, announced plans to add Bitcoin to its balance sheet, joining the growing list of publicly traded firms accumulating digital assets.
JPMorgan Chase, the largest U.S. bank by assets, is expanding its crypto-related services. The bank now allows select trading and wealth management clients to use Bitcoin and other leading crypto assets as collateral for loans. Additionally, customers can secure financing using cryptocurrency exchange-traded funds (ETFs).
“The world’s most valuable bank will consider customers’ cryptocurrency holdings when evaluating their net worth. Digital assets are regarded the same as traditional ones when determining how much a client can borrow against their assets.”
JPMorgan has also joined other institutions investing in cryptocurrency-related initiatives. The Tier 1 bank launched its dollar-pegged stablecoin, JPM Coin, in 2020. In 2024, CEO Jamie Dimon confirmed that the bank would soon allow customers to purchase Bitcoin.
“Moreover, Dimon reiterated his skepticism over the asset class, comparing investing in Bitcoin to smoking.”
The bank’s initial offering includes iShares Bitcoin Trust, the largest U.S.-based spot Bitcoin ETF, currently managing $70.1 billion in net assets, according to Sosovalue.com.
Regulatory changes have also played a role in reshaping the crypto landscape. Under President Donald Trump, constraints previously placed on banking and crypto activities were relaxed. The Federal Reserve lifted regulations that had hindered bank involvement with stablecoins and cryptocurrencies. Furthermore, the Office of the Comptroller of the Currency confirmed that U.S. banks are now authorized to manage crypto custodial assets on behalf of clients.
During this regulatory shift, The Wall Street Journal reported that major U.S. banks were engaged in preliminary discussions to create a new cryptocurrency-backed stablecoin.
Despite these bullish developments, caution remains.
“Geoffrey Kendrick, Standard Chartered’s global head of digital asset research, warned of an impending market correction on the pioneer digital asset.”
In a note to investors, Kendrick highlighted a surge in corporate Bitcoin accumulation, stating that businesses imitating Strategy have doubled their holdings over the past two months, reaching nearly 100,000 BTC.
“He claims that the issue is that these businesses purchased at average prices significantly higher than Michael Saylor’s.
Therefore, if the price of Bitcoin drops below $90,000, about half of the treasuries held by 61 public companies not related to the cryptocurrency would be ‘underwater.’”
Kendrick estimated that a 22% decline from the average entry price could trigger widespread liquidations.
Bitcoin’s volatility, while offering potential for substantial gains, also introduces significant risks—particularly for companies using it as a treasury reserve asset.
“The British-based bank cautions serve as a reminder that this approach is not without consequences. Due to its inherent volatility, Bitcoin has the potential to turn a highly profitable and strategic investment into a risky wager, particularly if the market undergoes a significant correction.”
