Bitcoin News Update: Institutions Increase Bitcoin Holdings Threefold During Market Fluctuations, Strengthening Abu Dhabi’s Aspirations as a Crypto Hub
- A 10-year Bitcoin model by Sminston With shows 300% returns even with poor timing, highlighting its long-term resilience despite 2025 volatility. - Global liquidity ($113 trillion) and undervalued BTC (-1.52σ below fair value) suggest favorable conditions for Bitcoin's $170,000 projected fair price. - Institutional confidence grows as Abu Dhabi's Mubadala triples Bitcoin holdings and invests $2B in Binance, reinforcing its crypto hub ambitions. - New projects like Bitcoin Munari (BTCM) and regulatory shi
Despite recent price swings, Bitcoin continues to hold strong long-term prospects. A fresh 10-year analysis by researcher Sminston With indicates that investors might not need to worry excessively about the exact timing of their entry. The simulation predicts that purchasing
The results from this model echo a generally positive macroeconomic outlook.
Even with these positive indicators, Bitcoin experienced a steep drop in late 2025, falling below $90,000 and leaving the average 2025 investor down by 13%. This decline is similar in percentage to April’s drop but has lasted only half as long. Experts warn that if the price falls below $93,000, it could open up a liquidity gap near $89,600, though some believe the broader market downturn presents buying opportunities.
Institutional demand for Bitcoin is still on the rise. Abu Dhabi’s Mubadala Investment Co. tripled its Bitcoin holdings in the months leading up to the recent downturn. As part of a $1.7 trillion sovereign wealth fund, Mubadala has helped establish Abu Dhabi as a major crypto center, including a $2 billion investment in Binance. These actions demonstrate strong faith in Bitcoin’s future, even as individual investors contend with short-term price swings
Political and regulatory shifts are also influencing Bitcoin’s path. The U.S. government shutdown in late 2025 briefly restricted liquidity, and the proposed CLARITY Act could change oversight by moving crypto regulation to the Commodity Futures Trading Commission (CFTC).
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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