Experts have different opinions on whether the adoption of Bitcoin constitutes a bubble. As concerns about market pullbacks intensify, long-term holders remain firm in their beliefs.

The crypto circle is talking about Bitcoin, institutional entry and the possibility of a bear market. Are we entering a "harsh" downward cycle, or is it a pain in Bitcoin's process of moving towards mainstream assets? Let's dive into it in depth.

Institutional Bitcoin: Prosperity or bubble?

Since the first quarter of 2024, the number of businesses holding Bitcoin has surged by about 226%. Large companies such as MicroStrategy and Metaplanet are driving this trend together with emerging forces such as Procap BTC and 21Shares Capital, building huge Bitcoin reserves. This craze has caused some experts to be alert. Crypto analyst Heidi quoted data on the chain that a potential institutional bubble is forming and warns of a possible sharp bear market correction.

Black Swan Capital co-founder Versan Aljarrah also expressed similar concerns, saying the institutions may be encouraging retail investors to buy at the moment as a means of exiting liquidity. Once institutions start selling their positions, the market may face the risk of collapse.

Bear market scenario: A storm is coming?

Currently, institutions control about 5.39% of the total supply of Bitcoin, of which MicroStrategy accounts for 2.8%. If these holders choose to ship large-scale goods, the market will be under tremendous pressure: intensified selling pressure, worsening sentiment, rising volatility, and even prolonging the bear market. Sygnum has previously warned that institutional sell-offs may further lower Bitcoin prices and worsen the overall market atmosphere.

Bull Market View: The Future of Bitcoin or Corporate Financing

Not everyone thinks it is a bubble. Some people point out that more and more companies choose Bitcoin out of the need to "save something that is not printable" and is a reasonable measure to fight inflation. Joe Burnett, director of Bitcoin strategy at Semler Scientific, said Bitcoin will become an important part of the corporate capital structure in the next decade.

MicroStrategy co-founder Michael Saylor is a representative of this long-term bullish stance. He has always advocated never selling Bitcoin, and even said that he would destroy his private key after his death. This firm attitude shows that at least some institutions have long-term confidence in holding Bitcoin.

MicroStrategy Increases: An Empirical Cases of Belief

Recently, MicroStrategy purchased 4,980 bitcoins for about $531.9 million, an average of about $106,801 per coin, further strengthening its long-term strategy. As of June 29, 2025, the company held a total of 597,325 BTC, with a cumulative cost of approximately US$42.4 billion. Its Bitcoin reserves yielded 19.7% in 2025, indicating that its accumulation strategy continues to be better than traditional treasury management methods. This is not investment advice, it is just a statement of facts.

Conclusion: Facing the unknown

Whether this institution-led Bitcoin boom is a bubble expansion or its establishment process as a cornerstone of corporate capital remains to be seen. The end result will depend on market trends and the long-term stability of Bitcoin. It is certain that in the crypto world, this journey will never lack excitement. So, please fasten your seat belt, do your research, and maybe it’s not an exaggeration to prepare some popcorn – the next development is worth looking forward to!

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