Bitcoin is rising on liquidity recovery and institutional demand, not geopolitics, says institutional executive

Source: CryptoBriefing Original Title: Bitcoin is rising on liquidity recovery and institutional demand, not geopolitics, says Coinbase executive Original Link:

Key Takeaways

• Bitcoin’s price gains are attributed to recovering market liquidity and increased institutional demand.
• A head of institutional strategy at a major compliance platform clarifies that the recent Bitcoin rally is not directly linked to geopolitical events.

Analysis

Bitcoin’s recent rally is being driven by recovering market liquidity and strong institutional demand rather than geopolitical events, according to institutional market observers.

“It’s a massive geopolitical event. That narrative certainly holds as a long-term thesis, that proof of Bitcoin as a temporary currency to replace a destabilized currency. That’s fine. I also hear the argument that we’re probably going to have lower oil prices. Historically, the Fed has eased during lower oil price conditions.”

“However, usually that’s a demand issue versus a supply issue. I’ve got to be honest. I don’t see any direct evidence that what’s happening in geopolitical events is directly applicable.”

Market makers rebuilding positions have been identified as a key factor driving Bitcoin higher, along with rising retail sentiment, strong institutional momentum, and Bitcoin’s decades-long performance as a store of value.

Bitcoin has gained over 11,000% in the past decade compared to gold’s 260% and the S&P 500’s roughly 300% rise.

“We’re seeing gradual rebuilding from the liquidity event in October. The market makers are getting more comfortable with their risk parameters, adding risk back into the market.”

“We’re seeing retail sentiment catch up to what we’ve known on the institutional side. So retail sentiment is catching up to institutional momentum.”

On institutional adoption, no major institution working on crypto strategies has pulled back despite Bitcoin’s recent volatility. Regulatory momentum has accelerated institutional timelines rather than slowed them.

While Bitcoin remains volatile, it has become less so over time. Expanding use cases include new regulations allowing Bitcoin as mortgage collateral and partnerships enabling spending at thousands of vendors.

Regarding public skepticism around crypto, senior institutional leaders no longer openly doubt Bitcoin’s viability, with few executives now claiming Bitcoin is going to zero.

“If you think that now at a partner level, you’re keeping your mouth shut, because it’s a bit embarrassing.”