Bitcoin’s relentless bull market is once again redefining its role in modern investment portfolios, according to a recent report by Fidelity Digital Assets. As of block height 892,500, marking a quarter of the way through the current halving epoch, Bitcoin has been trading between a staggering $82,500 and $85,000. This represents a 31% uptick from its valuation on April 19, 2024, when the fourth halving reduced block rewards to 3.125 BTC. The evolving dynamics of this cryptocurrency are drawing in a new cohort of investors, reflecting a maturing market and broadening adoption.
A Maturing Market
Fidelity’s latest research indicates that Bitcoin’s performance in this bull market showcases a maturing asset class. Daniel Gray, Fidelity’s senior research analyst, highlighted the network’s resilience, noting a 50% surge in hashrate since the halving. This increase is a testament to miners’ robust commitment despite reduced rewards. In stark contrast to previous halving cycles, which saw significant post-halving rallies, the 2024–2025 phase is marked by steadier growth. As explored in our recent coverage of Bitcoin’s surge past $94,000, institutional interest and market optimism continue to drive this growth.
The Puell Multiple, a key indicator of miner revenue relative to Bitcoin’s price, has found a stable footing, suggesting the market’s adjustment to lower issuance without major volatility. The report elaborates, “Bitcoin’s more muted returns likely reflect a market that is digesting several extrinsic tailwinds and headwinds, which have inevitably caused some uncertainty.” Historically, such mid-epoch phases have coincided with new all-time highs—a milestone reached just this week. Fidelity posits that this growth could extend into the second quarter of 2025, potentially reshaping Bitcoin’s role as a credible asset class.
Institutional Influx and Realized Cap Growth
A remarkable 63% increase in Bitcoin’s Realized Cap—from $561 billion to $915 billion since the 2024 halving—underscores the vast scale of capital flowing into the market. Realized Cap, a pivotal metric that measures cumulative net capital inflows, has been on an upward trajectory with each halving, signaling Bitcoin’s evolution into a mature asset with significant growth potential.
Key drivers of this bull market include unprecedented levels of institutional and corporate participation. The approval of spot Bitcoin exchange-traded funds (ETFs) in the US in January 2024 has triggered a flood of $134 billion in inflows. Moreover, monthly trading volumes on platforms such as Binance soared past $1 trillion in March 2024, a dramatic leap from $11 billion in January 2018. For further insights into the market dynamics, see our analysis of Bitcoin surpassing $95K amid resilient U.S. stocks.
Public companies have strategically accumulated Bitcoin, setting a new industry standard. Notably, Strategy now holds an impressive 576,230 BTC, with firms like Metaplanet Inc., Bitcoin Group SE, and Semler Scientific following suit. This strategic move validates Bitcoin’s position as a corporate treasury asset, and Gray asserts that Bitcoin’s fundamentals and global recognition are “stronger than ever,” signaling a robust cycle of growth, institutional anchoring, and market resilience.
Future Implications
As Bitcoin reaches new heights, traders are left pondering whether its price, which some speculate could soon hit $111,000, is overheating. The current bull market’s record-breaking institutional interest and corporate investments raise questions about whether this trend is sustainable. However, Bitcoin’s proven resilience and the increasing sophistication of its market participants suggest a promising future.
The ongoing expansion in Bitcoin’s adoption and its evolving role in portfolios worldwide suggest that it may soon be viewed not just as a speculative asset but as a staple in diversified investment strategies. As we move further into 2025, all eyes will remain on Bitcoin’s performance and the broader implications for the cryptocurrency market.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Source
This article is based on: Bitcoin’s bull market will ‘redefine’ BTC’s role in modern portfolios — Fidelity research
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.
