SKN | Bitcoin Beats Gold and Stocks as Institutional Buying Fuels Market Strength

Key Points:

• Bitcoin climbed roughly 7% last week, outperforming gold and global equity markets during geopolitical volatility.

• Institutional ownership through spot ETFs and corporate treasury strategies is reshaping Bitcoin’s investor base.

• Long-term holders continue to dominate supply, with about 60% of Bitcoin unmoved for over a year.

Bitcoin Shows Strength During Global Market Turbulence

Bitcoin outperformed both gold and major stock markets during the latest wave of geopolitical uncertainty, highlighting a shift in how the digital asset behaves during periods of market stress.

According to research from Bernstein, Bitcoin rose approximately 7% over the past week as global markets reacted to escalating geopolitical tensions. The performance exceeded gains seen in traditional safe-haven assets such as gold and broader global equities.

The report suggests that the cryptocurrency’s resilience reflects a fundamental change in its ownership structure.

Institutional Capital Reshapes Bitcoin Ownership

Analysts at Bernstein noted that institutional investors are increasingly shaping the Bitcoin market through regulated investment products and corporate treasury strategies.

Spot Bitcoin exchange-traded funds have attracted roughly $2.1 billion in inflows over the past three weeks, bringing ETF ownership to about 6.1% of the total Bitcoin supply.

These products are increasingly used by wealth managers, pension funds and sovereign investors seeking exposure to digital assets within traditional investment frameworks.

Strategy Expands Its Bitcoin Treasury Model

Another major driver of institutional ownership is the accumulation strategy employed by Strategy.

The company, led by executive chairman Michael Saylor, recently purchased approximately 22,337 Bitcoin at an average price of around $70,194 per coin.

This acquisition, valued at roughly $1.57 billion, pushed Strategy’s total holdings to about 761,068 Bitcoin acquired at an average cost of $75,696.

Bernstein analysts described the company’s approach as functioning like a “Bitcoin central bank of last resort,” continuing to accumulate the asset even during market downturns.

Financing Bitcoin Purchases Through Capital Markets

Strategy has also expanded its funding approach through preferred equity offerings, including its STRC product.

The instrument provides investors with income linked to the Secured Overnight Financing Rate (SOFR), generating additional liquidity that the company uses to fund further Bitcoin purchases through at-the-market equity offerings.

This financing structure allows the firm to steadily increase its Bitcoin holdings while maintaining access to traditional capital markets.

Long-Term Holders Continue to Dominate Supply

While institutional investors accumulate Bitcoin, retail traders have been net sellers in recent months.

Despite this shift, long-term holders remain a dominant force in the market.

Approximately 60% of the total Bitcoin supply has not moved for more than a year, indicating that many investors continue to treat the asset as a long-term store of value rather than a short-term trading instrument.

Renewed Debate Over Bitcoin as Digital Gold

Bitcoin’s recent performance has also revived discussions about whether the cryptocurrency can function as a geopolitical hedge similar to gold.

Although the asset lagged behind gold for much of the previous year, its resilience during the latest bout of global uncertainty has strengthened arguments that Bitcoin may be evolving into a form of “digital gold.”

However, analysts caution that the comparison remains debated, as Bitcoin continues to exhibit characteristics of both a risk asset and a potential store of value.

For equity investors seeking exposure to Bitcoin’s upside, Bernstein noted that shares of Strategy currently trade at roughly a 14% discount to the value of the Bitcoin held on its balance sheet.

At the time of publication, Bitcoin was trading near $73,900, while Ether — the second-largest cryptocurrency by market capitalization — had risen more than 8% to around $2,273.