Executive Summary
The Story So Far
Why This Matters
Who Thinks What?
Michael Saylor, Strategy Chair of MicroStrategy, predicts that Bitcoin will experience a significant price increase towards the end of 2025, driven by a surge in corporate and institutional demand. Saylor attributes this anticipated growth to major companies and exchange-traded funds (ETFs) consistently acquiring Bitcoin, which is expected to create upward pressure on the cryptocurrency’s price as “macro headwinds” subside.
Demand Outstripping Supply
Saylor elaborated on CNBC’s Closing Bell Overtime that growing corporate adoption and continuous acquisitions by large ETF funds on behalf of institutional investors are consuming the natural supply of Bitcoin. He noted that companies capitalizing on Bitcoin are buying more than the daily output from miners, leading to a supply squeeze.
According to Bitbo, miners generate approximately 900 Bitcoin per day. However, a recent report from financial services company River indicates that businesses are acquiring an average of 1,755 Bitcoin daily in 2025, while ETFs are snapping up an additional 1,430 per day on average in the same year, significantly exceeding the new supply.
Market Dynamics and Outlook
Bitcoin has recently shown volatility, trading between $111,369 and $113,301 over the last 24 hours and a seven-day range of $111,658 to $117,851, according to CoinGecko. The market also saw nearly $2 billion in liquidations on Monday, one of the year’s largest, though analysts largely attributed this to technical factors rather than weakening market fundamentals.
Saylor remains optimistic, stating, “I think that as we work through the resistance of late and some macro headwinds, we’ll actually see Bitcoin start to move up smartly again toward the end of the year.”
Corporate Bitcoin Adoption
Saylor categorizes Bitcoin-buying companies into two main groups. The first includes operating companies that opt to hold Bitcoin as a treasury reserve asset, rather than returning capital via traditional dividends and buybacks. The second category comprises “true treasury companies” that are specifically capitalizing on Bitcoin as a strategic asset.
Saylor’s Long-Term Vision
Looking ahead, Saylor envisions a future where the global financial system operates on “digital gold-backed credit,” much like it ran on gold-backed credit for three centuries. He believes treasury companies are increasingly holding digital capital and developing digital credit instruments, with Bitcoin emerging as the ideal form of digital capital to underpin these new financial tools, catering to a vast demand for equity and credit instruments in traditional capital markets.
