Bitcoin has smashed through its old record, hitting $123,600 and sending a wave of excitement through the crypto world. The jump comes as traders bet big on a September Fed rate cut, with fresh inflation data showing prices cooling to 2.7%. There’s even talk from US Treasury Secretary Scott Bessent about a bigger 50 bps cut, which could pump more money into the markets and fire up risk-taking. Riding the hype, Santiment celebrated Bitcoin’s $123,610 peak as a proud milestone in its 17-year journey.
Fed Rate Cut Fuels Liquidity Hopes
A potential rate cut is a green light for increased liquidity in the market, offering a significant tailwind to both Bitcoin and altcoins. BTC’s market cap has now leapfrogged Google and Amazon, ranking as the sixth-largest asset globally, with only gold and tech giants like Apple, Microsoft, and Nvidia ahead. This milestone has also boosted institutional portfolios. MicroStrategy’s Bitcoin holdings have reached a record $77.2 billion, while El Salvador’s national BTC stash now sits on an unrealized profit of over $468 million.
Whale Moves Signal Confidence
Adding to the bullish tone, on-chain trackers flagged a massive whale withdrawal of 5,400 BTC (worth $656 million) from Kraken, likely destined for cold storage. While some suggested it could be a portfolio reshuffle, analysts believe it signals strong institutional accumulation. Large-scale withdrawals to private wallets often hint at long-term conviction and reduced sell pressure, factors that can help sustain price rallies.
Miner Reserves Drop, Easing Sell Pressure
One key factor supporting Bitcoin’s rally is the sudden drop in miner reserves. Earlier this month, reserves climbed from 1,806,790 BTC on August 2 to 1,808,488 BTC on August 10, raising fears of increased selling from miners, a common rally killer. But just as BTC began breaking out, reserves fell to 1,806,630 BTC and have since stayed steady. This decline means less immediate selling risk, removing a major obstacle for bulls looking to push prices higher.
Ethereum has followed Bitcoin’s lead, rallying over 28% in the past week and inching closer to its own ATH of $4,891. Traders are now weighing whether this liquidity injection could trigger a broader breakout in altcoins. With Ethereum’s options open interest hovering near record highs at $13.75 billion, derivative markets point toward incoming volatility.
Market Outlook
In the current situation, if liquidity from a Fed rate cut combines with rising ETF inflows and stablecoin adoption, the next phase of this rally could push Bitcoin deeper into price discovery and potentially ignite the long-awaited altcoin season.
Interestingly, Samson Mow, CEO of JAN3 and a long-time Bitcoin advocate sees two possible outcomes for Bitcoin now, either BTC surges massively, causing altcoins to drop 30–40%, or altcoins rally first, then crash hard, with Bitcoin briefly dipping before moving higher again.
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Corporate Bitcoin adoption continues its proliferation as more companies pursue accumulation strategies for their treasuries. Firms can benefit from capital appreciation, diversification, and an inflation hedge if executed properly.
However, not all Bitcoin acquisition strategies are created equal. If a company’s sole purpose is to hold BTC without sufficient resources or scale, it can risk total collapse during extended bear market periods. A chain reaction could further amplify downward pressure that could prove catastrophic.
Varying Approaches to Corporate Bitcoin Holdings
Institutional Bitcoin adoption is rising worldwide, with Bitcoin Treasuries data indicating that holdings have doubled since 2024. Public companies now collectively own over 4% of the total Bitcoin supply.
Interestingly, this increase in volume also represents a broadening range of reasons for doing so.
Some companies, most notably Strategy (formerly MicroStrategy), intentionally pursue such a playbook to become a Bitcoin treasury holding company. The move worked well for Strategy, whose supply accounts for 53% of total company holdings with over 580,000 BTC.
Other firms, like GameStop or PublicSquare, have taken a different approach, prioritizing exposure over aggressive accumulation. This scenario is optimal for firms that simply want to add BTC to their balance sheets while continuing to focus on their core businesses.
Initiatives like this carry far less risk than companies whose core business solely holds Bitcoin.
However, the increasing trend of companies adding Bitcoin to their financial reserves solely to dedicate themselves to holding Bitcoin carries profound implications for their businesses and Bitcoin’s future.
How Do Bitcoin-Focused Companies Attract Investors?
Building a successful Bitcoin treasury holding company involves much more than just aggressively buying Bitcoin. When a business’s sole purpose becomes Bitcoin holding, it will be exclusively valued based on the Bitcoin it holds.
To attract investors to buy their stock rather than just holding Bitcoin directly, these companies must outperform Bitcoin itself, reaching a premium known as Multiple on Net Asset Value (MNAV).
In other words, they must convince the market that their stock is worth more than the sum of its Bitcoin holdings.
Strategy implements this, for example, by convincing investors that by buying MSTR stock, they aren’t just purchasing a fixed amount of Bitcoin. Instead, they’re investing in a strategy where management actively works to increase the amount of Bitcoin attributed to each share.
If investors believe MicroStrategy can consistently grow its Bitcoin per share, they will pay a premium for that dual ability.
However, that’s just one part of the equation. If investors buy into that promise, Strategy has to deliver by raising capital to buy more Bitcoin.
The MNAV Premium: How It’s Built, How It Breaks
A company can only deliver an MNAV premium if it increases the total amount of Bitcoin it holds. Strategy does this by issuing convertible debt, which allows it to borrow funds at low interest rates.
It also leverages At-The-Market (ATM) equity offerings by selling new shares when their stock trades at a premium to its underlying Bitcoin value. Such a move enables Strategy to acquire more Bitcoin per dollar raised than existing shares, increasing Bitcoin per share for current holders.
This self-reinforcing cycle—where a premium allows efficient capital raises, which fund more Bitcoin, strengthening the narrative—helps sustain the elevated stock valuation beyond Strategy’s direct Bitcoin holdings.
However, such a process involves several risks. For many companies, the model is directly unsustainable. Even a pioneer like Strategy endured heightened stress when Bitcoin’s price dropped.
Nonetheless, over 60 companies have already adopted a Bitcoin-accumulating playbook during the first half of 2025. As that number grows, new treasury companies will face the associated risks even more acutely.
Aggressive BTC Accumulation Risks for Small Players
Unlike Strategy, most companies lack scale, an established reputation, and the “guru status” of a leader like Michael Saylor. These characteristics are crucial for attracting and retaining the investor confidence needed for a premium.
They also don’t generally have the same creditworthiness or market power. Knowing this, smaller players will likely incur higher interest rates on their debt and face more restrictive covenants, making the debt more expensive and harder to manage.
If their debt is collateralized by Bitcoin in a bear market, a price drop can quickly trigger margin calls. During an extended period of downward pressure, refinancing maturing debt becomes extremely difficult and costly for already overburdened companies.
To make matters worse, if these companies have shifted their core operations to focus solely on Bitcoin acquisition, they have no alternative business cushion that generates a stable and separate cash flow. They become entirely dependent on capital raises and Bitcoin’s price appreciation.
When several companies take such a move simultaneously, the consequences for the greater market can go south dramatically.
Does Corporate Bitcoin Adoption Risk a “Death Spiral”?
If many smaller firms pursue a Bitcoin accumulation strategy, the market consequences during a downturn can be severe. If Bitcoin’s price falls, these companies may run out of options and be forced to sell their holdings.
This widespread, distressed selling would inject an enormous supply into the market, significantly amplifying downward pressure. As seen during the 2022 crypto winter, such events can trigger a “reflexive death spiral.”
The different stages of a Bitcoin death spiral. Source: Breed VC.
The forced selling by one distressed company can further drive Bitcoin’s price down, triggering forced liquidations for other firms in a similar position. Such a negative feedback loop can provoke an accelerated market decline.
In turn, highly publicized failures could damage broader investor confidence. This “risk-off” sentiment could lead to widespread selling across other cryptocurrencies due to market correlations and a general flight to safety.
Such a move would also inevitably put regulators on high alert and spook off investors who may have considered investing in Bitcoin at one point.
Beyond Strategy: The Risks of Going “All-In” on Bitcoin
Strategy’s position as a Bitcoin treasury holding company is unique because it was a first mover. Only a handful of companies match Saylor’s resources, market influence, and competitive advantage.
The risks associated with such a playbook are various and, if proliferated, can be detrimental to the greater market. As more public companies move to add Bitcoin to their balance sheets, they must carefully decide between getting some exposure or going all-in.
If they choose the latter, they must cautiously and thoroughly weigh the consequences. Though Bitcoin is currently at all-time highs, a bear market is never entirely out of the question.
The discussions on a potential XRP ETF approval by the US SEC are mounting among the market participants which could drive the crypto price higher. Besides, with the recent leadership change in the US SEC and the pro-crypto sentiment hovering, the discussions have further peaked recently. Amid this, experts have cited the approval as a potential catalyst to drive the XRP price to a new high in the coming days.
XRP ETF Approval: Will It Spark A Price Rally?
The XRP ETF approval discussions are now the talk of the town with the pro-crypto regulatory shift in the US. Besides, experts have said that Ripple’s coin and Solana are now leading the altcoin ETF race, citing key reasons.
Notably, nine firms have already submitted ETF applications for Ripple’s native asset with the US SEC. Though still under review, rumors hint that BlackRock may join the race, a move that could dramatically accelerate momentum.
Meanwhile, the asset management giant controls over $11 trillion in AUM, and its entry could send a strong signal to the market. However, an XRP enthusiast has recently shared why BlackRock has still not moved ahead with such a plan.
Expert Predicts Robust Surge
In a recent podcast, crypto analyst “Good Morning Crypto” said that an XRP ETF could act like a “giant vacuum,” pulling the coin out of circulation. Every ETF investment would move Ripple’s native asset into custodial holdings, tightening supply and sparking demand pressure.
Besides, the analyst highlighted that once these ETFs go live, they could lead to scarcity-driven price growth. With fewer coins circulating and more investors locking in their tokens, the market could experience a classic demand shock.
XRP ETF To Trigger ‘A Perfect Storm’?
Meanwhile, in a bullish scenario, regulatory clarity might arrive by August. If US lawmakers pass new legislation on crypto tax, infrastructure, and stablecoins, it would likely clear the path for businesses to use XRP in daily operations. Once that happens, the analyst suggested, institutional adoption would take off.
Besides, the discussions have further soared with pro-crypto Paul Atkins’ entry as the new US SEC chair. Furthermore, if ETFs start hoarding XRP and companies expect prices to rise, they might start stockpiling tokens early. This kind of behavior mirrors a “front-loading effect” in commodity markets, where future price gains trigger large-scale early buying.
XRP price has recorded strong gains of over 9% today, soaring to the $2.28 mark, with its one-day volume rocketing 131% to $5.56 billion. Notably, this surge also comes amid a broader crypto market recovery, with BTC price soaring past the $93K mark.
Amid this, Sistine Research said that Ripple’s coin is poised to hit between $33 and $50 in the coming days. However, the analyst has cited his target as “conservative” and said that it is based on the historical pattern from 2017.
Source: Sistine Research, X
However, the analyst also noted that a “cup and handle” analysis points towards a massive breakout ahead. According to him, this analysis indicates that XRP price is poised to hit between $77 and $100 in the coming days. Having said that, if XRP ETF gets the green light from the US SEC, the future of the asset’s price might hit new heights.
