Institutional interest in Bitcoin is gaining fresh momentum, fueled by a climate of increasing geopolitical friction and uncertainty surrounding major U.S. economic decisions. As global markets brace for the potential fallout of new trade dynamics and a controversial federal spending plan, large-scale investors are turning to Bitcoin as a hedge.
Former President Donald Trump is championing a sweeping fiscal proposal called the “One Big Beautiful Bill Act,” which he claims will slash federal expenditures by up to $1.6 trillion. “This bill will supercharge economic growth and steer our nation in the right direction,” Trump wrote in a Truth Social post on Thursday.
The bill’s proposal arrives during the final stages of a pending trade deal between the U.S. and China. Trump indicated on Wednesday that the agreement still needs approval from both sides, adding another layer of uncertainty to an already volatile global economy.
Critics have raised concerns about the spending plan’s long-term effects on the national deficit. Elon Musk voiced alarm in a June 5 post on X, warning that the bill could push the deficit as high as $2.5 trillion.
A ballooning deficit could prompt the U.S. Federal Reserve to resort to quantitative easing (QE) — the process of injecting money into the economy by purchasing bonds. Such a move often inflates asset values, including Bitcoin. Arthur Hayes, co-founder of BitMEX and CIO at Maelstrom, recently projected that Bitcoin could soar to $250,000 if QE policies are reintroduced amid inflation and trade tensions.
Lucas Outumuro, VP of Institutional DeFi at Sentora (formerly IntoTheBlock), noted that these global headwinds, particularly tariff-driven uncertainty, have been favorable for Bitcoin. Speaking during a June 5 Chain Reaction X space, he explained: “Trump’s deglobalization strategy has created an environment where many institutions and even governments are reevaluating their trust in the U.S. financial system. Bitcoin is becoming an increasingly attractive alternative.”
On April 2, Trump announced a new set of reciprocal tariffs aimed at narrowing the U.S. trade deficit—estimated at $1.2 trillion—and boosting domestic industry. These protectionist measures, while politically charged, have added to the perception of growing risk in traditional markets.
In tandem with these macroeconomic shifts, on-chain data shows a surge in activity among major Bitcoin investors. According to CryptoQuant, the realized capitalization held by newly emerged Bitcoin whales (wallets with 1,000+ BTC acquired within the past 155 days) reached an all-time high of $113.7 billion this week. This metric excludes centralized exchange and mining addresses, offering a clearer view of institutional accumulation.
Sentora’s Outumuro also highlighted that the average holding period for Bitcoin is dropping, indicating a rise in short-term exposure and suggesting growing retail and fund-driven interest. He emphasized that recent inflows into exchange-traded products and firms like Twenty One Capital are helping absorb sell pressure from long-term holders.
Led by Strike CEO Jack Mallers, Twenty One Capital is building out financial infrastructure on Bitcoin’s base layer, aiming to support lending, custody, and asset issuance natively on Bitcoin protocols — a move that could further cement Bitcoin’s role in global finance.
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