Bitcoin’s allure among institutional players remains unshaken, even in the face of extreme market volatility.
Recent data reveals public companies now hold 527,026 BTC—2.66% of the circulating supply—following aggressive buying sprees amid a volatile week for the world’s largest cryptocurrency.
BTC experienced a dramatic flash crash on December 5, plunging from an all-time high of nearly $104,000 to $92,980 within hours.
The $10,000 drop, attributed to a leverage-induced liquidation event, wiped out $900 million in long positions, affecting 163,587 traders, according to Coinglass data.
The milestone high earlier that day attracted global media attention, but the sharp correction highlighted the market’s fragility.
Analyst “lowstrife” noted the crash was “entirely a spot Bitcoin move driven by leverage.” Bitcoin pioneer Adam Back added that insufficient market-making amplified the price movement, exposing gaps in liquidity management.
Despite the turbulence, BTC quickly stabilized and returned to its trading range around $97,600 by early December 6.
BlackRock and MARA Buy the Dip
Amid this volatility, institutional buyers like BlackRock and MARA Holdings capitalized on the price dip to expand their BTC holdings.
BlackRock purchased 7,750 BTC, bringing its total holdings to $48.9 billion, according to Arkham Intelligence. The inflow was fueled by heightened demand for shares in its spot Bitcoin ETF, which Thomas Fahrer of Apollo called the “fastest-growing ETF ever.”
Meanwhile, MARA Holdings added 1,423 BTC in transactions totaling $139.5 million. The miner’s reserves have surged 162% month-over-month to 22,108 BTC, worth $2.17 billion.
MARA’s aggressive accumulation aligns with its new treasury strategy to retain all mined Bitcoin and use capital market instruments to grow reserves.
Whales and Smaller Players Join the Fray
An unknown whale also leveraged the price drop, acquiring 600 BTC worth $58.9 million. The wallet, which showed no prior Bitcoin activity before November 24, underscores the growing appetite among high-net-worth individuals for strategic Bitcoin acquisitions.
Additionally, healthcare technology firm Semler Scientific added 303 BTC on December 4 at an average price of $96,779. This purchase increased its total holdings to 1,873 BTC, valued at $182.8 million.
Interestingly, while spot markets endured turbulence, spot Bitcoin ETFs remained bullish. U.S.-based spot Bitcoin ETFs saw inflows totaling $748 million on December 5, led by BlackRock’s IBIT fund with $751.6 million in inflows.
This resilience reflects growing institutional confidence in regulated Bitcoin investment vehicles.
Institutional Dominance Grows
Data from BitcoinTreasuries highlights the increasing institutional stake in Bitcoin.
Public companies collectively hold 527,026 BTC, while asset management firms and private companies own 1,253 BTC and 410,418 BTC, respectively. Governments hold a modest 2,856 BTC by comparison.
As institutional investors like BlackRock and MARA intensify their Bitcoin acquisitions, the cryptocurrency’s narrative as digital gold continues to gain traction.
This growing institutional presence could significantly influence Bitcoin’s future price dynamics and adoption.
Despite the recent volatility, institutional interest underscores Bitcoin’s resilience as a long-term asset.
As more public firms adopt Bitcoin as a treasury strategy, its limited supply and increasing demand could further bolster its value proposition.
