Bitcoin Adoption by Institutions Remains Unwavering Despite Market Downturn

According to Omkar Godbole, despite the recent significant downturn in the crypto market, institutional adoption of Bitcoin remains robust. Andre Dragosch, head of research for Europe at Bitwise, expressed his optimism regarding Bitcoin's current price, stating it is a bargain. This sentiment is supported by the continued demand from corporate and institutional investors, even as macroeconomic factors such as the DXY, Treasury yields, and Fed rate expectations pose risks to assets. Intesa Sanpaolo, Italy's largest bank, has reportedly purchased 11 Bitcoins for $1 million, which could accelerate crypto adoption in the EU's third-largest economy. Furthermore, corporate Treasury purchases of Bitcoin have reached 5,774 in the first two weeks of January, surpassing the supply of new Bitcoins. The recent price bounce to over $96,000, combined with ongoing institutional adoption and rumors of potential executive orders addressing crypto-accounting SEC rules, suggests that bearish influences may struggle to gain traction. The market may see further price increases if the upcoming U.S. producer price index indicates softer inflation, potentially weakening the hawkish Fed narrative.