Despite strong institutional demand, Bitcoin (BTC) has struggled to reclaim the $100,000 level for the past 50 days

This price weakness is particularly intriguing given the US Strategic Bitcoin Reserve executive order issued by President Donald Trump on March 6

Despite strong institutional demand, Bitcoin (BTC) has struggled to reclaim the $100,000 level for the past 50 days, leading investors to question the reasons behind the bearishness despite a seemingly positive environment.

This price weakness is particularly intriguing given the US Strategic Bitcoin Reserve executive order issued by President Donald Trump on March 6, which allows BTC acquisitions as long as they follow “budget-neutral” strategies.

Bitcoin fails to keep up with gold’s returns despite positive news flow

On March 26, GameStop Corporation (GME), the North American video game and consumer electronics retailer, announced plans to allocate a portion of its corporate reserves to Bitcoin. The company, which was on the verge of bankruptcy in 2021, successfully capitalized on a historic short squeeze and managed to secure an impressive $4.77 billion in cash and equivalents by February 2025.

Largest corporate Bitcoin holdings. Source: BitcoinTreasuries.NET

A growing number of US-based and international companies have followed Michael Saylor’s Strategy (MSTR) playbook, including the Japanese firm Metaplanet, which recently appointed Eric Trump, son of US President Donald Trump, to its newly established strategic board of advisers. Similarly, the mining conglomerate MARA Holdings (MARA) adopted a Bitcoin treasury policy to “retain all BTC” and increase its exposure through debt offerings.

There must be a strong reason for Bitcoin investors to sell their holdings, especially as gold is trading just 1.3% below its all-time high of $3,057. For example, while the US administration adopted a pro-crypto stance following Trump’s election, the infrastructure needed for Bitcoin to serve as collateral and integrate into traditional financial systems remains largely undeveloped.

Bitcoin/USD (orange) vs. gold / S&P 500 index. Source: TradingView / Cointelegraph

The US spot Bitcoin exchange-traded fund (ETF) is limited to cash settlement, preventing in-kind deposits and withdrawals. Fortunately, a potential rule change, currently under review by the US Securities and Exchange Commission, could reduce capital gain distributions and enhance tax efficiency, according to Bitseeker Consulting chief architect Chris J. Terry.

Regulation and Bitcoin integration into TradFi remains an issue

Banks like JPMorgan primarily serve as intermediaries or custodians for cryptocurrency-related instruments such as derivatives and spot Bitcoin ETFs. The repeal of the SAB 121 accounting rule on Jan. 23—an SEC ruling that imposed strict capital requirements on digital assets—does not necessarily guarantee broader adoption.

For example, some traditional investment firms, like Vanguard, still prohibit clients from trading or holding shares of the spot Bitcoin ETFs, and administrators like BNY Mellon have reportedly restricted mutual funds’ exposure to these products. In fact, a significant number of wealth managers and advisers remain unable to offer any cryptocurrency investments to their clients, even when listed on US exchanges.

The Bitcoin derivatives market lacks regulatory clarity, with most exchanges opting to ban North American participants and choosing to register their companies in fiscal havens. Despite the growth of the Chicago Mercantile Exchange (CME) over the years, it still accounts for only 23% of Bitcoin’s $56.4 billion futures open interest, while competitors benefit from fewer capital restrictions, easier client onboarding, and less regulatory oversight on trading.

Related: SEC plans 4 more crypto roundtables on trading, custody, tokenization, DeFi

Bitcoin futures open interest ranking, USD. Source: CoinGlass

Institutional investors remain hesitant to gain exposure to Bitcoin markets due to concerns about market manipulation and a lack of transparency among leading exchanges. The fact that Binance, KuCoin, OK and Kraken have paid significant fines to US authorities for potential anti-money laundering violations and unlicensed operations further fuels the negative sentiment toward the sector.

Ultimately, the buying interest from a small number of companies is not enough to push Bitcoin’s price to $200,000, and additional integration with the banking sector remains uncertain, despite more favorable regulatory conditions.

Until then, Bitcoin’s upside potential will continue to be limited as risk perception remains elevated, especially within the institutional investment community.