Cryptocurrency
From Scarcity to Strategy: How Bitcoin Became a Global Asset
Bitcoin’s explosive 188% rally reflects growing institutional adoption, post-halving supply constraints, and supportive regulatory momentum. With technical indicators pointing to continued strength and ETFs opening the door for broader participation, upside potential remains. However, past cycles suggest that sharp pullbacks often follow major peaks. Investors will be watching for clarity on U.S. crypto policy, global reserve adoption, and further corporate buying. As Bitcoin matures, its role in portfolios could expand—but so too could the volatility.
Bitcoin’s Remarkable Rally: Unpacking the Drivers Behind a 188% Surge
Since November 2023, Bitcoin has delivered an extraordinary 188% return—far outpacing the S&P 500’s 37% and the Nasdaq 100’s 43% gains over the same period, based on historical market data. This remarkable rally, fuelled by a powerful combination of catalysts, highlights Bitcoin’s growing influence in global finance. With momentum accelerating once again, technical indicators—such as rising trading volumes and bullish moving averages—point to the potential for further gains. Still, Bitcoin’s history of 70–80% drawdowns following peaks is a cautionary reminder to tread carefully.
ETFs Open the Floodgates
The rally gained momentum in January 2024, when the U.S. Securities and Exchange Commission approved spot Bitcoin exchange-traded funds (ETFs). BlackRock’s iShares Bitcoin Trust (IBIT) led the charge, reaching $70 billion in assets under management by June 2025—making it the fastest ETF to reach this milestone, according to Bloomberg analyst Eric Balchunas. This surge reflects robust institutional and retail demand, with IBIT holding over 662,500 BTC—roughly 3% of the total supply.
ETFs made Bitcoin more accessible, allowing retail investors to add it to their portfolios with ease. New launches, such as VanEck’s Onchain Economy ETF, further diversified access. However, the SEC’s extended review of in-kind ETFs for assets like Solana has delayed broader expansion.
Halving Sparks Supply Scarcity
April 2024’s Bitcoin halving marked another pivotal catalyst. Occurring every four years, the event halved the reward for mining new coins, significantly slowing the rate at which Bitcoin enters circulation. With total supply capped at 21 million, this effectively tightened availability amid rising demand—much like a limited-edition product becoming scarcer. Historically, halvings have sparked bull markets, and 2024 was no exception, with prices peaking near $112,000 on 22 May 2025.
The halving’s impact was magnified by increased corporate adoption, triggered by a December 2023 accounting change from the Financial Accounting Standards Board. This allowed companies to report Bitcoin holdings at market value—prompting firms like MicroStrategy to expand their reserves. As institutional buying rose, the amount of tradable Bitcoin shrank, helping drive prices higher.
Political and Regulatory Tailwinds
Political developments have added further fuel. Donald Trump’s re-election in November 2024—and his promises of a pro-crypto administration—boosted sentiment. His proposal for a U.S. Strategic Bitcoin Reserve, akin to the Strategic Petroleum Reserve, sparked investor imagination and speculative optimism.
Globally, countries including the UK, Ireland, Taiwan, Ukraine, and Pakistan have explored or advanced similar “National Bitcoin Reserve” legislation. In the U.S., regulatory clarity is improving. The Senate’s advancement of the GENIUS Act for stablecoin oversight and the Digital Asset Market Clarity Act of 2025 signal movement towards a structured framework.
Regulatory shifts are notable: the SEC dropped its lawsuit against Binance, the Commodity
Futures Trading Commission withdrew its appeal against crypto platform Kalshi, and the Department of Labour reversed restrictions on crypto in 401(k) retirement plans. Internationally, countries like Australia, Hong Kong, Russia, etc. are progressing blockchain initiatives, reinforcing crypto’s global relevance.
Industry Milestones Reflect Growth
The crypto sector is evolving rapidly. Traditional finance is increasingly engaged: JPMorgan now permits clients to purchase Bitcoin (though it refrains from custody), while Morgan Stanley plans to offer Bitcoin trading on E-Trade by 2026.
Coinbase made history by becoming the first crypto-native company added to the S&P 500 on 19 May 2025. Its $2.9 billion acquisition of options platform Deribit reflects growing industry consolidation. The IPO pipeline is active—eToro listed on Nasdaq with a $6 billion valuation, and Circle has filed for a $7 billion NYSE debut. Robinhood’s $179 million acquisition of Canadian platform WonderFi highlights ongoing expansion. Even major banks like JPMorgan Chase and Bank of America are exploring stablecoin offerings—signalling crypto’s deeper integration into mainstream finance.
Navigating the Road Ahead
Bitcoin’s 188% surge represents a powerful convergence of accessibility, scarcity, and institutional support. Momentum remains strong, and technical signals point to further upside potential. Yet caution is essential—history shows that sharp corrections often follow explosive gains. As Bitcoin reshapes modern finance—from ETF adoption to global regulatory acceptance—it presents a compelling case for investors. Staying informed and measured will be key to navigating this dynamic and fast-evolving market.
Senior Market Specialist
Russell Shor
Russell Shor is a Senior Market Strategist at Tradu, having been promoted to the role in 2025 in recognition of his depth of insight and consistent delivery of high-impact market analysis. He originally joined FXCM in October 2017 as a Senior Market Specialist.
Russell holds an Honours Degree in Economics from the University of South Africa, is a certified FMVA®, and a full member of the Society of Technical Analysts (UK). With over 20 years of experience in financial markets, his work is renowned for its clarity, precision, and strategic value across asset classes.