The post Is Bitcoin’s Institutional Adoption Boom Setting Up for a Bubble? appeared on BitcoinEthereumNews.com.

Experts are raising alarms about a potential institutional bubble forming around Bitcoin (BTC), which could lead to a severe bear market.  The warning comes as firms ramp up their Bitcoin exposure. The number of corporations holding Bitcoin has risen by approximately 226% since Q1 2024. Bitcoin’s Institutional Boom: A Bubble in the Making? In the latest X (formerly Twitter), crypto analyst and educator Heidi flagged this trend. She cited Bitwise data to highlight a steady rise in corporate Bitcoin adoption. After remaining consistent in early 2024, the number of corporations holding Bitcoin grew gradually throughout the year. In 2025, the adoption surged, reflecting a significant uptick in institutional interest.   Institutional Adoption of Bitcoin. Source: X/Blockchainchick Towards the close of Q2 2025, the number of corporations holding Bitcoin has reached 134. This marked a 57.6% increase from Q1 2025. This includes giants like Strategy (formerly MicroStrategy) and Metaplanet and new firms like ProCap BTC and Twenty-One Capital, which are focused on building large-scale Bitcoin treasuries.  With institutional players increasingly pouring capital into the digital asset, concerns are mounting about the potential for an unwinding of these positions when market conditions shift.  “The institutional bubble is forming? The next bear market is going to be brutal,” Heidi posted. Furthermore, Versan Aljarrah, co-founder of Black Swan Capitalist, shared the concerns. He argued that corporations may be encouraging retail investors to buy now to serve as ‘exit liquidity.’ “They will all dump. That’s why they want people buying in now instead of BTC lows in 2022. Exit liquidity. Nothing moves in a straight line,” he wrote. The latest data from Bitcoin Treasuries showed that institutions have a total of 1,132,913 BTC, divided between 842,035 BTC (public) and 290,878 BTC (private). This amounts to approximately 5.39% of the total supply. Strategy alone holds around 2.8%…

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Filed under: News - @ June 30, 2025 1:26 pm