Altcoins are slowly gaining momentum

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After weeks of uncertainty, Bitcoin is on the move again. The price has risen sharply, leaving the correction behind for the time being. Altcoins are also benefiting, although their recovery is still fragile. In the meantime, major parties are setting their sights on Bitcoin, with Twenty One providing fresh evidence of increasing institutional adoption.

Market update

The Bitcoin price has risen by 12% in the past week, climbing from €74,300 to €83,500. That's already 24% higher than the bottom of the recent correction on April 7, when the price hit €67,500; the lowest level since the results of the US presidential election on November 6, 2024.

The increase brings BTC back above the 10-week average, which tracks the short-term trend. This is an indication that the correction may be over and that we are entering a new upward trend. If the price were to enter a new period of decline, we would be looking at the start of a new downward trend.

The correction bottomed out at 36% below the peak. That was the steepest correction of this bull market. If the price were to double from that low as it has done four times in the past two years, it would reach around €135,000.

With the rise in the Bitcoin price, optimism and risk appetite are also slowly returning. We can see this in the strong gains among all altcoins. In addition to SUI and VIRTUAL, many of the top performers are memecoins. However, it's worth noting that many of these coins have lost more than 80% in recent months, and that there is no guarantee that they will follow Bitcoin into a new upward trend.

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Twenty One: A new step in institutional adoption

Bitcoin adoption by large, international players continues at full speed. Recently, SoftBank, Tether, and Cantor Fitzgerald announced the creation of Twenty One, a new publicly traded company focused entirely on Bitcoin. With an initial position of 42,000 BTC, worth approximately $4 billion, Twenty One immediately becomes one of the largest Bitcoin holders among publicly traded companies worldwide.

This development shows that Bitcoin is increasingly seen as a strategic asset by institutional investors looking for long-term value and portfolio diversification.

A collaboration of established names

Twenty One is an initiative bringing together three well-known parties:

SoftBank, a global investment firm: brings expertise in identifying emerging trends.
Tether, issuer of the world's largest stablecoin: contributes a significant portion of the Bitcoin the company holds at launch.
Cantor Fitzgerald, a renowned financial services provider from the United States: guides the process of listing on the stock exchange via a so-called SPAC.

The goal of Twenty One is clear: to offer investors a simple and transparent way to gain exposure to Bitcoin via the stock exchange, without having to buy or manage Bitcoin directly. In doing so, the company follows in the footsteps of other parties that have embraced Bitcoin as a core asset, such as Strategy and MetaPlanet.

Twenty One's newly appointed CEO, Jack Mallers, explained the company's mission on television. The ambition is to not only offer shareholders exposure to Bitcoin, but to also deliver the highest possible "Bitcoin yield" per share. Twenty One exists solely to grow the number of Bitcoins per share, in part by attracting additional capital.

What does this mean for Bitcoin?

The creation of Twenty One fits into a broader trend in which Bitcoin is increasingly integrated into the traditional financial world. We've already seen the launch of spot Bitcoin ETFs in the United States, and now we are seeing companies actively adding Bitcoin to their balance sheet strategies.

The fact that firms like Cantor and SoftBank are backing an initiative like Twenty One underlines the growing confidence in Bitcoin as a long-term store of value. At the same time, it shows that there is a growing need for professional, regulated structures that provide investors access to Bitcoin.

For the Bitcoin market, this means further diversification of demand. This contributes to a more stable and mature ecosystem. For investors, the future of Bitcoin is looking increasingly favorable, partly thanks to these kinds of initiatives.

In other news

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SUI outperformed the altcoin market this week, surging 73%. The total market cap surged to over $12 billion as a result. The rally lifted the entire Sui ecosystem with DEX tokens like DeepBook and Cetus doubling in value. Daily trading volumes peaked at $800 million. Rumors of a link with Pokémon and the launch of the Grayscale SUI Trust also fueled momentum. SUI is currently the standout performer in the altcoin market.
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Satoshi Radio: The latest episode of Satoshi Radio is aired from the studio in Rotterdam. The hosts about the bitcoin exchange rate that soared above $90,000 in a short period of time. What happened, and what can we expect? They also discuss the latest news, including the announcement of Twenty One and the appointment of SEC Chairman Paul Atkins.

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.