Behind Bitcoin’s $120K: who’s buying

Breaking $120,000 was a historic moment for Bitcoin – but the forces that got it there matter more than the pullback that followed. Unlike past retail-driven rallies, this one is led by institutional investors, sovereign funds, and asset managers who see Bitcoin as a core holding.

“The current rally is driven by favorable macro conditions and growing market maturity,” Vugar Usi Zade, Bitget COO, told The Crypto Radio. “Spot Bitcoin ETFs are bringing in over $2.5 billion in weekly flows, reflecting deepening interest from asset managers and corporate treasuries.”

Zade described this cycle as “increasingly shaped by traditional financial participation, not just retail enthusiasm.”

Bitcoin Suisse CEO Andrej Macjen also pointed to the changing market landscape, saying the rally stands apart from previous cycles thanks to institutional demand and macroeconomic trends.

The institutional shift reshaping Bitcoin

Macjen highlighted how Bitcoin’s ownership structure is shifting. “One fact that makes this bull run different is that the ownership structure of Bitcoin is being transformed as institutions, governments, and central banks increasingly seek Bitcoin exposure,” he said.

Institutional participation now extends beyond direct Bitcoin purchases. Macjen explained that investors can gain exposure through spot ETFs or by investing in companies such as Strategy, which hold Bitcoin on their balance sheets. “Corporates like MicroStrategy, Semler Scientific, and Tesla are using Bitcoin to diversify their balance sheets or drive stock value,” he added.

According to Macjen, Bitcoin has delivered “impressive” year-to-date returns of around +20% and, based on his firm’s analysis, has “consistently had the lowest average correlation to traditional asset classes such as bonds, commodities, equities, gold, and real estate in 2025.”

Where the risks are now

While the rally has been strong, Zade pointed to Bitcoin’s unpredictable nature. After recently dipping about 4% from its all-time high, trading near $118,000, he remarked, “Markets don’t move as expected; they’re not linear.”

He cautioned that “policy shifts, profit-taking, or geopolitical shocks could trigger short-term corrections” and identified regulatory development as a key risk, especially if adoption moves faster than policy frameworks.

Macjen added that “a quieter summer in Q3 is possible,” but noted that long-term holder activity could strengthen performance later in the year.

What’s next for Bitcoin in 2025

Despite recent pullbacks, both Zade and Macjen see reasons for optimism. Macjen said, “With Q1 losses behind us, investor sentiment is expected to stay strong in the near term. Ongoing interest from corporate, institutional, and sovereign investors – especially via spot ETFs – should help reduce short-term volatility.”

Zade echoed the positive outlook: “Momentum through 2025 looks strong, especially with constrained supply post-halving and demand from ETFs showing no signs of slowing.”

He added, “Both trends are underway – institutions are moving quickly, and regulators are catching up. High prices draw attention from all sides, leading to greater scrutiny but also clearer frameworks. Long-term, balanced oversight is healthy and signals a maturing asset class.”

Bitcoin’s brief slip below $120,000 doesn’t erase the underlying market shift. Institutional adoption, evolving regulation, and new investor channels are reshaping how Bitcoin fits into global finance. The coming months will test whether this momentum can endure – and whether Bitcoin’s role as a mainstream asset will continue to solidify.