Bitcoin and Market Trends: A Closer Look

According to a recent report from BYBit, Bitcoin’s growing popularity is attributed to more favorable crypto regulations in the US and rising interest from institutional investors, largely due to the emergence of Spot Bitcoin Exchange-Traded Funds (ETFs).

As of May, Bitcoin (BTC) comprised about 30.95% of investor portfolios, up from 25.4% in November 2024. This positioning makes Bitcoin the largest single asset in the cryptocurrency market. On the other hand, ether (ETH) and Vitocoin saw a notable drop to a low of 0.15 by the end of April, but have since bounced back to 0.27.

This ratio suggests that for each dollar invested in ether, an investor typically allocates approximately $4 to Bitcoin.

Interestingly, Bitcoin has consistently outperformed other prominent global assets since President Trump’s inauguration, attracting attention as a portfolio diversifier that can enhance returns, as noted by Cointelegraph in March 2025.

The sharp returns of Bitcoin have sparked an increase in institutional interest— the number of companies holding Bitcoin has nearly doubled since June 5th, with over 244 now on record compared to just 124 recently. According to Bitcoin Tray, a total of 3.45 million bitcoins are held by the Ministry of Finance, with around 834,000 bitcoins—or about 3.97% of publicly-owned companies—linked to Treasury holdings, and more than 1.39 million bitcoins representing roughly 6.6% due to Bitcoin ETFs.

Looking ahead, market research head Joe Burnett from UNChained suggests that Bitcoin might reach as high as $1.8 million by 2035. “I see two models that make sense for where Bitcoin could be in a decade,” he remarked in a Cointelgraf Chain Reaction interview, indicating a parallel model predicting that $1.8 million figure.

Retail Holdings Show Decline

Despite the positive momentum, retail Bitcoin allocations have dropped by 37% since November 2024, settling at about 11.6%. This represents only half of what institutional investors hold.

Retail traders seem inclined to “sell off Bitcoin holdings to invest in altcoins,” including XRP and Stablecoins. The BYBit report highlights that XRP’s presence in portfolios has grown, rising from 1.29% in November 2024 to 2.42% in May.

“There’s a sentiment in the crypto investment industry that Ripple’s Spot ETF approval is foreseeable, perhaps even ahead of Solana’s Spot ETF,” the report notes.

Meanwhile, Solana’s portfolio holdings have sharply declined from 2.72% in November to 1.76% as of May.