Pension funds increase investments in bitcoin
Last week, the price of Bitcoin (BTC), measured in US dollars, climbed back towards its highest level ever, supported by new market entrants and large investors increasing their positions. The price of Ether (ETH) also gained ground, driven by technological innovation and a fresh new story. Has Ethereum left its recent lows behind? Find out more in this Bitvavo Market News.
Market update
Amid the turmoil and uncertainty of the US trade war, Bitcoin's price fell from over €100,000 in late January to a low of €67,500 in early April. Interestingly, this is the same level as the March 2024 peak and the starting point of the rally following Trump's election.
Since that low, the price has now risen by more than 40% to €95,700 last weekend. A series of higher highs and higher lows shows that the trend remains upward. The cautious recovery of altcoins also suggests that investors are starting to be ready to take on a little more risk again.
Looking at on-chain data, we can see that existing investors have switched from selling to buying. From early January to late April, many reduced their positions by selling Bitcoin. But in recent weeks, they have started buying again. Even with prices just below the all-time high, they are hardly taking any profits.
Measured in dollars, we recorded the highest weekly close ever at $106,500. After six weeks of gains, it wouldn't be surprising to see a short-term pullback. However, more and more indicators suggest that the uptrend could continue through the summer.
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Ether outperforms Bitcoin
In the crypto world, a single month can feel like an eternity. At the beginning of May, Ether was still in the shadow of Bitcoin, but since then, the mood has shifted. Ether's price has risen by about 33% in May, while Bitcoin has stalled at 9%. For the first time in a long time, Ether is outperforming its bigger brother, and, as is so often the case in crypto, the positive stories start to follow as the price moves up.
One of the key drivers was the successful Pectra upgrade in early May. This is the biggest technical innovation of Ethereum since The Merge in 2022, when the network switched to Proof-of-Stake.
Pectra makes Ethereum more scalable, faster, and easier to use, with improvements for validators and smarter ways to organize transactions. But perhaps more importantly, it shows that Ethereum is still evolving, with an engaged and active community and developers who continue to improve the network.
On top of that, the Ethereum Foundation introduced a new long-term plan last week called Trillion Dollar Security. The goal? To position Ethereum as the most secure and reliable decentralized network in the world - a foundation on which banks, governments, and companies can confidently build. This isn’t just another vague roadmap, but a serious strategy shaped by leading cybersecurity experts.
For now, Ethereum seems firmly back on track. The upgrade went smoothly, the new plan was positively received, and the price is on the rise. There is a growing sense that Ethereum matters again. But, as always in crypto, that feeling is fragile. If the price drops 20% tomorrow, people might suddenly dismiss Pectra as overhyped tech talk, and that billion-dollar security plan could start to look like nothing more than wishful thinking on paper.
Still: the worst seems to be behind us for now. And sometimes that's all it takes to start a new story.
In other news
New companies following in MicroStrategy's footsteps. From Singapore to Brazil, more companies like Basel Medical Group, DDC Enterprise, Top Win, Méliuz, Addentax, and Nakamoto Holdings are announcing plans to add Bitcoin to their balance sheets. Some are talking of investing tens of millions of dollars, while others have set targets of 5,000 BTC or more. The message is clear: Bitcoin's corporate strategy is gaining traction worldwide.
Fifth Third Bancorp eyes broader role in the crypto space. The $200 billion U.S. bank has already built up a small client base in recent years and is now actively exploring applications of stablecoins for international payments. It is also considering ways to let consumers pay with crypto. “We have to leverage this technology,” said Chief Strategy Officer Ben Hoffman.
US pension funds increase their investment in Bitcoin. Analyst Julian Fahrer recently looked at their holdings in Strategy. In the first quarter of 2025, fourteen US states increased their stakes in the company, totaling $302 million. This brings their combined exposure to $632 million. Through Strategy, these funds have found a regulated way to profit from Bitcoin’s price movements.
Ukraine working on legislation to add Bitcoin as a strategic national reserve. The central government is partnering with Binance to create a national BTC reserve. The political goal? Economic stability in times of conflict and currency volatility. If the plan goes through, Ukraine would become the first European country to hold Bitcoin on its balance sheet. A geopolitical first in the making?
Satoshi Radio: The latest episode of Satoshi Radio talks about Coinbase, which was included in the S&P 500, and suffered a data breach. Furthermore, the hosts explore ways to make profits on stablecoins and talk about the news that US banks have gotten the green light to custody and trade crypto. As usual, the podcast ends with the market update.
This article is for informational purposes only and does not constitute a marketing communication or recommendation. None of the content herein should be considered as investment advice or a substitute for it. Bitvavo makes no guarantees regarding the accuracy or completeness of the provided information. Investments involve risks. There is a possibility of losing your entire invested capital.