Bitcoin (CRYPTO: BTC) remains roughly 50% below its all-time high, but adoption across institutions, corporations and governments continues to expand,

According to Bitcoin service provider River, this suggests a bear market in price, not necessarily in fundamentals.

Institutional Accumulation at Record Levels

In 2025, institutions accumulated an estimated 829,000 BTC, distributing exposure to millions of investors through ETFs, retirement accounts and corporate balance sheets.

Selling pressure has largely come from long-term holders and whales, while individuals still control roughly two-thirds of total supply, indicating decentralization remains intact despite institutional growth.

RIAs Are Increasing Exposure

Registered investment advisors (RIAs), who collectively manage about $146 trillion in assets, have been net buyers of Bitcoin ETFs for eight consecutive quarters.

Average allocations remain extremely small, roughly 0.008%, implying substantial room for expansion if Bitcoin becomes a standard portfolio allocation.

Banks and Corporate Adoption Are Rising

Around 60% of major U.S. banks are reportedly developing Bitcoin custody and related services amid clearer regulatory frameworks.

Public company holdings surged 2.5x in 2025, led primarily by treasury-focused firms, with broader S&P 500 adoption potentially unfolding over time.

Merchant and Lightning Are Growing

Merchant acceptance continues to accelerate. U.S. businesses accepting Bitcoin have tripled, while global merchant adoption rose 74%, driven by cost efficiencies and settlement advantages.

The Lightning Network expanded 300% in 2025 and now processes over $1.1 billion in monthly volume, supported by exchange integrations and merchant usage.

Nation-State Participation Is Up As Volatility Declines

Five additional countries reportedly added Bitcoin exposure in 2025 through sovereign wealth funds, mining operations or central bank strategies.

Notably, no country has enacted a full Bitcoin ban in the past four years, signalling regulatory normalization rather than hostility.

Bitcoin's volatility continues to compress, gradually approaching that of gold and the S&P 500. Lower volatility increases its attractiveness to more conservative capital pools that previously avoided crypto due to extreme price swings.

The Bigger Picture

Although price action remains subdued, adoption metrics point to steady structural expansion.

Institutional participation, banking integration, merchant growth and sovereign involvement collectively suggest that infrastructure and legitimacy are compounding beneath the surface.

If historical cycles hold, sustained adoption growth could lay the groundwork for the next acceleration phase, even if price consolidation persists in the near term.

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