Bitcoin’s institutional adoption is seeing a new wave of corporate investments, which stand to benefit from more global uncertainty before a trade agreement is finalized or a controversial US spending bill is passed.
US President Donald Trump is pushing forward the “One Big Beautiful Bill Act,” which he says would cut as much as $1.6 trillion in federal spending.
“The great, big, beautiful bill will grow the economy like it has never grown before,” Trump wrote in a Truth Social post on Thursday. “It puts put our country on the right track, plus!”
The proposal comes amid ongoing efforts to finalize a trade agreement between the United States and China, which Trump on Wednesday said was “subject to final approval” by both governments.
Elon Musk criticized the spending bill in a June 5 X post, warning that it would “increase the deficit to $2.5 trillion.”
A growing US deficit may lead to an increase in the money supply through quantitative easing (QE), which refers to central banks buying bonds and pumping money into the economy to encourage spending through stagnating economic conditions.
Arthur Hayes, co-founder of BitMEX and chief investment officer at Maelstrom, has predicted Bitcoin could climb to $250,000 if the US Federal Reserve pivots to QE, due to growing inflationary pressures from trade tariffs.
Related: Nasdaq-listed Mercurity Fintech to raise $800M for Bitcoin treasury
More tariff-related uncertainty may benefit Bitcoin’s (BTC) growing valuation, according to Lucas Outumuro, vice president of institutional DeFi at Sentora (previously IntoTheBlock).
“Bitcoin has been benefiting from this deglobalization that Trump has been bringing forth,” he told Cointelegraph during the Chain Reaction daily X spaces show on June 5.
“The tariffs created a lot of animosity between international partnerships and people,” he said, prompting large entities and nation states to question whether their wealth was safe in the US economy.
— Cointelegraph (@Cointelegraph) June 5, 2025
Trump unveiled his reciprocal import tariffs on April 2, measures aimed at reducing the country’s estimated trade deficit of $1.2 trillion in goods and boosting domestic manufacturing.
Related: Bitcoin still on track for $1.8M in 2035, says analyst
New Bitcoin whales reach record realized capitalization
The growing Bitcoin adoption from large investors pushed Bitcoin’s realized capitalization among new whales to a record high of $113.7 billion on Tuesday, CryptoQuant data shows.
The metric measures the total amount of Bitcoin held by whales with at least 1,000 Bitcoin, with an average coin age below 155 days, excluding centralized exchanges and Bitcoin miner addresses.
Moreover, the average age of Bitcoin holders has also been decreasing, meaning that more short-term holders are gaining Bitcoin exposure, according to Sentora’s Outumuro.
“That’s a sign that the market is getting heated,” said the analyst, adding that Bitcoin acquisitions through exchange-traded funds and other “public vehicles like Twenty One Capital” are offsetting a significant amount of Bitcoin selling pressure from long-term holders.
Led by Strike CEO Jack Mallers, Twenty One Capital aims to develop Bitcoin-native capital markets infrastructure, allowing products like lending, custody and asset issuance to operate directly on Bitcoin rails.
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