Bitcoin’s institutional demand could trigger the next big rally

Once the rebellious outsider of the financial world, Bitcoin is now rubbing shoulders with the suits. With public companies scooping up coins faster than ETFs and political heavyweights like Elon Musk making pro-Bitcoin noise, the original crypto is having a serious glow-up. 

From Wall Street boardrooms to Capitol Hill spats, Bitcoin is no longer just a decentralised experiment - it’s becoming a power play. But with massive inflows, mounting debt, and a bit of political theatre in the mix, the big question now is: could this new wave of corporate and political clout spark the next major rally?

Bitcoin ETF inflows are back - and it's not what you think

In the second quarter of 2025 alone, public companies purchased a staggering 131,355 Bitcoins, boosting their holdings by 18%, according to Bitcoin Treasuries. ETFs weren’t far behind, adding 111,411 BTC - up 8% over the same period.

Alt Text: Bar chart comparing net Bitcoin flows for public companies and ETFs across four quarters from Q3 2024 to Q2 2025. 

Source: Bitcoin Treasuries, CNBC

But here’s the twist: this is the third quarter in a row that public companies have out-bought ETFs. Year to date, companies have gobbled up 237,664 BTC, nearly double the amount acquired by ETFs. All in all, corporates now hold around 855,000 Bitcoins or roughly 4% of the total supply.

In other words, this isn’t just a Wall Street story - it’s a full-blown boardroom binge. Bitcoin is no longer a fringe hedge. It’s becoming a balance sheet asset.

Politics gets messy as Bitcoin news rides along

Enter Elon Musk, never one to shy away from a headline. After falling out with Donald Trump over what he dubbed a fiscally reckless “one big, beautiful bill,” Musk launched his own political movement - the “America Party.” At the heart of it? Ballooning U.S. debt and the belief that Bitcoin might just be the last line of defence.

Musk isn’t alone. Wall Street analysts and podcasters alike are sounding the alarm over the $37 trillion U.S. debt mountain, which is growing even faster thanks to new spending legislation that adds another $3 trillion to the tab and raises the debt ceiling by $5 trillion.

Musk and others’ message is clear: if the U.S. keeps printing and spending, the dollar risks losing credibility, and Bitcoin might be the “hard money” hedge that saves the day.

The bull case builds even as the Bitcoin price drops

Now here’s where it gets interesting. Despite all this bullish momentum,  institutional buying, political attention, and Wall Street product launches, Bitcoin’s price dropped to around $107,000, even after a $1 billion ETF inflow over two days.

Alt Text: Bar chart from Coinglass showing daily crypto inflows and outflows from July 2024 to July 2025. Green bars represent inflows and red bars represent outflows. 

Source: Coinglass

That’s not how the script was supposed to go.

Analysts blame a mix of profit-taking, macro uncertainty, and regulatory jitters for the price dip. It’s a stark reminder that in crypto, narratives are powerful, but they don’t always move the price when you expect them to. ETF inflows are bullish, yes - but they’re not a magic wand.

Altcoin season indicators: Spotlight on Ethereum and Solana

While Bitcoin consolidates, the rest of the crypto market isn’t sitting still. Ethereum ETFs are quietly stacking up inflows, with $148.5 million added on Thursday alone - $85.4 million of that going into BlackRock’s ETHA fund. Since launching in July 2024, these Ethereum funds have attracted $4.4 billion.

Even Solana is getting its institutional moment, thanks to a brand-new staking ETF from REX Shares and Osprey Funds. It debuted this week with strong $11.4 million in day-one inflows, which is not bad for a token that was once written off as a meme chain with outages.

Alt Text: This table shows Solana ETF Flow in US dollars (millions). It lists flows under the REX-Osprey ETF with a 0.75% fee. The seed investment was $0.6M. 

Source: Farside Investors

The takeaway? Institutions are no longer just banking on Bitcoin. They’re building crypto portfolios - and that could be huge for altcoins in the coming months.

The Altseason season setup is taking shape

Bitcoin dominance has climbed to 64.6%, which, if you’ve been around long enough, you’ll know is a level that often signals a shift. When BTC dominance peaks and starts to roll over, that’s when altcoins historically shine. It’s like a pressure valve releasing capital across the crypto landscape.

As BRN Research Analyst Valentin Fournier puts it: if Bitcoin consolidates near its highs, it could pave the way for a full-blown altseason. That means Ethereum, Solana, and even some of the usual meme suspects could get their moment in the sun - fuelled by both institutional inflows and good old retail FOMO.

Does this potential Bitcoin transformation mean take off?

Here’s the million-pound question: will Bitcoin’s new suit-and-tie persona finally deliver the rocket-fuelled rally investors are hoping for?

There’s a strong case for it:

• Institutions are all-in with ETFs nearing $50 billion in cumulative inflows.
  
  
• Corporate buyers are stacking sats like it’s a treasury strategy.
  
  
• Politicians are name-dropping Bitcoin amid a fiscal credibility crisis.
  
  
• And yet, the price wobbles - reminding everyone this is still crypto.
  
  

The glow-up is undeniable. Bitcoin has gone from a rebellious outsider to a respected asset class. But whether that transformation triggers the next major rally depends on one thing: what the market chooses to believe next.

Bitcoin price outlook

At the time of writing, Bitcoin is showing some buy pressure within a sell zone, hinting that the sellers could swoop in strongly at any time. However, the volume bars have shown bullish dominance over the past few days with little pushback from sellers, hinting at a potential uptick. If we see a price uptick, bulls could encounter resistance at the $110,500 and $111,891 price levels. Conversely, if we see a drawdown, sellers could find support at the $107,210, $105,000, and $100,900 support levels. 

‍

Alt Text: Bitcoin (BTCUSD) daily candlestick chart showing key support and resistance levels. Labels highlight 111,891 as the all-time high and 110,500 as a resistance zone for profit-taking.

Source: Deriv MT5

‍