Cryptocurrencies have shown remarkable resilience amid geopolitical tensions between Iran and Israel, but the market hasn’t been celebrating. Bitcoin and Ethereum, the two leading tokens, remained in a narrow trading range over the past day, with Bitcoin Cash leading the top 100 tokens with a modest 4% gain. Behind the scenes, however, institutional interest in crypto is ramping up, signaling a possible bullish future.
Institutions Betting Big
On Monday, JPMorgan made waves by filing for a crypto-focused platform, JPMD, which will offer trading, exchange, and payment services involving digital assets. Just last week, Strategy made headlines with its colossal acquisition of over 10,100 BTC, valued at $1.05 billion, marking one of the largest purchases this year. This move aligns with the broader trend of institutional investments, as detailed in Strategy adds $1B in Bitcoin as Israel-Iran conflict pressures markets. Meanwhile, both Bitcoin and Ether spot ETFs experienced notable inflows, suggesting continued confidence from institutional investors.
Valentin Fournier, lead research analyst at BRN, noted a significant shift in market leadership toward corporations and institutions. “With demand remaining robust and sell pressure weak, we uphold a high-conviction view that prices will grind higher in 2025,” Fournier observed. He added that while momentum is temporarily stalled, the risk/reward asymmetry favors maintaining investments, particularly as retail investors may re-enter the market. “We anticipate BTC to lead until retail returns or ETH sees renewed institutional interest,” he concluded.
Regulatory Developments and Market Reactions
The regulatory landscape is also evolving, with the GENIUS stablecoin bill and the bipartisan CLARITY Act making strides in Congress. However, geopolitical tensions and regulatory uncertainties have left investors cautious. President Trump recently dismissed reports of diplomatic talks with Iran, further stirring concerns about a prolonged Middle Eastern conflict.
Another pivotal moment for the markets will come with the Federal Reserve’s rate decision on June 18, 2025. While rates are expected to remain unchanged, the Fed’s commentary on future interest rate trajectories could significantly impact market sentiment. According to XBTO, capital flows have turned selective as risk aversion grows. “The Market Factor, reflecting the broader liquid crypto assets, fell by 4.06%,” XBTO shared with CoinDesk, indicating a controlled de-risking process rather than a panic sell-off.
Market Dynamics and Emerging Trends
Despite the current lull, there are signs of strategic consolidation. “We are witnessing a structural shift,” said Fournier. “Corporations and institutions are taking the reins, driving demand.” This sentiment is echoed in the derivatives market, where annualized perpetual funding rates for major tokens remain under 10%, indicating a bullish yet measured outlook. However, the HYPE token stands out with funding rates surpassing 40%, suggesting a potential long squeeze if prices falter.
Among the notable events, CoinShares’ application for a Solana spot ETF with the U.S. SEC highlights the ongoing institutional interest in diverse crypto assets. Meanwhile, OKX’s launch of fully compliant centralized exchanges in Germany and Poland illustrates the growing regulatory acceptance in Europe. This follows a pattern of institutional adoption, which we detailed in JPMorgan to Accept Bitcoin ETFs as Loan Collateral in Expansion of Crypto Access: Bloomberg.
As we move forward, the crypto market’s resilience amid external pressures raises questions about its ability to sustain this momentum. Will institutional interest continue to buoy prices, or will retail investors retake the stage? The coming months will likely provide clarity, with regulatory actions and central bank policies playing crucial roles in shaping the market’s trajectory.
Source
This article is based on: Crypto Daybook Americas: Institutions Pile In Amid ‘High Conviction’ That Prices Will Grind Higher
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
