Could GameStop’s purchase of Bitcoin boost the price to $200K?

Despite strong institutional demand, Bitcoin (BTCInvestors are questioning why the market is so bearish despite the seemingly good environment. 

The US dollar is currently at a low price, which makes this particular weakness of the US dollar particularly interesting. Strategic Bitcoin Reserve The executive order, signed on March 6, by Donald Trump and allowing BTC to be purchased as long they adhere to certain conditions. “budget-neutral” strategies.

Bitcoin’s performance is not up to par with that of gold despite a positive news flow

GameStop Corporation, the North American retailer of video games and consumer electronics announced on March 26 that it would be allocating a part of its revenues to a charitable cause. corporate reserves Bitcoin. This company was close to bankruptcy when it began in 2021. However, they were able to capitalize on an historic short squeeze, and secured $4.77 Billion in cash equivalents and other assets by 2025.

Metaplanet (a Japanese firm) is one of the many companies that have recently adopted Michael Saylor’s Strategy. appointed Eric TrumpThe newly formed strategic advisory board includes, the son of US president Donald Trump. The mining conglomerate MARA Holdings, (MARA), has also appointed Mr. Trump’s son to its newly established strategic board of advisers. adopted a Bitcoin treasury policy The following are some of the ways to get in touch with us: “retain all BTC” It can also increase its debt exposure.

Bitcoin investors must have good reason to dump their Bitcoin holdings. Gold is currently trading only 1.3% lower than its previous high of $3.057. The US administration may have adopted a pro crypto stance after Trump’s victory, but the infrastructure necessary for Bitcoin integration into conventional financial systems and to act as collateral is largely underdeveloped.

US Bitcoin spot exchange-traded funds (ETFs) are limited to cash settlements, which prevents in-kind withdrawals and deposits. The US Securities and Exchange Commission is reviewing a possible rule change that could lower capital gains and enhance tax efficiencyAccording to Bitseeker Consulting’s chief architect Chris J. Terry.

TradFi integration of Bitcoin and regulation remains an issue 

Banks like JPMorgan primarily serve as intermediaries or custodians for cryptocurrency-related instruments such as derivatives and spot Bitcoin ETFs. The repeal of the SAB 121 accounting rule on Jan. 23—an SEC ruling that imposed strict capital requirements on digital assets—does not necessarily guarantee broader adoption.

While administrators such as BNY Mellon have reportedly restricted mutual fund exposure to this product, there are still some traditional firms that prohibit their clients trading in or owning shares of spot Bitcoin-based ETFs. Many wealth managers, advisers, and other professionals are unable to provide their clients with cryptocurrency investments, even if they’re listed on US stock exchanges.

Bitcoin derivatives lack regulatory clarity. The majority of exchanges choose to prohibit North American participants, and to register their company in a fiscal haven. Despite CME’s growth, the exchange still represents only 23% (of Bitcoin futures) open interest of $56.4 Billion. Meanwhile, competitors enjoy fewer regulatory restrictions, easy client onboarding, less capital requirements, and less oversight of trading.

Related: SEC plans 4 more crypto roundtables on trading, custody, tokenization, DeFi

Due to market manipulation concerns and lack of transparency, institutional investors are hesitant to invest in Bitcoin. Binance KuCoin OK Kraken all paid large fines for possible market manipulation to US authorities. anti-money laundering violations You can also find out more about the following: unlicensed operations The negative perception of the sector is exacerbated.

The buying interest of a few companies will not be enough to drive Bitcoin to $200,000. Further integration into the banking industry is still uncertain despite the more favorable regulatory environment. 

Bitcoin’s potential upside will remain limited until then as long as the risk perception is elevated. This applies especially to institutional investors.

The article does not provide legal advice or investment recommendations and it is intended for informational purposes only. This article is solely for informational purposes. It does not represent or reflect Cointelegraph’s views.