Experts have issued warnings about potential institutional bubbles that will form around Bitcoin (BTC), which could lead to a serious bear market.
This warning occurs when companies increase their Bitcoin exposure. Since the first quarter of 2024, the number of companies holding Bitcoin has increased by around 226%.
Bitcoin’s institutional boom: a production bubble?
In the latest X (formerly Twitter), Crypto analyst and educator Heidi flagged this trend. She cited Bitwise Data to highlight a steady increase in companies’ adoption of Bitcoin.
After maintaining consistency in early 2024, the number of companies holding Bitcoin gradually increased throughout the year. In 2025, adoptions surged, reflecting a significant increase in institutional benefits.
Towards the end of the second quarter of 2025, the number of companies holding Bitcoin reached 134. This marked a 57.6% increase from the first quarter of 2025.
This includes giants like Strategy (previously MicroStrategy) and Metaplanet, as well as new companies like Procap BTC and 21’s capital.
As institutional players are pouring more capital into digital assets, concerns are growing about the possibility of rewinding these positions when market conditions change.
“Are there any institutional bubbles being formed? The next bare market will be cruel,” Heidi posted.
Additionally, Versan Aljarrah, co-founder of Black Swan Capital, shared his concerns. He argued that companies may be encouraging retail investors to buy now to act as “outlet liquidity.”
“They dump everything. So they want to buy now in 2022 instead of the BTC low. They end liquidity. Nothing moves in a straight line,” he writes.
The latest data from Bitcoin Treasuries showed that the agency had a total of 1,132,913 BTC divided into 842,035 BTC (public) and 290,878 BTC (private). This is about 5.39% of total supply. Strategy alone will retain approximately 2.8% of the total BTC supply.

If these institutions offload their holdings, the market could face serious consequences. In theory, it could lead to increased sales pressure, negative emotions, increased volatility, and increased long-term bear markets. This could in turn indicate instability, causing further institutional setbacks and reduce Bitcoin’s position as a stable asset.
Sygnum previously warned that if the market becomes oversaturated with demand and the bare market emerges, sales pressure from institutions will not only lower the price of Bitcoin, but will exacerbate sentiment across the market, leading to a larger recession.
“Michael Saylor Selling Bitcoin” will be a difficult headline for the crypto market to face,” Sygnum said.
From trends to standard: Bitcoin’s increasing influence on facility finances
Nevertheless, not all perspectives match the Bubble narrative. Pseudonym user Fiathawk countered that labeling this as a bubble was misguided.
“How is this a bubble? It’s not possible to print with other people who are saving money. If money printers continue to print, there’s very little bubble.
Several experts agree. Joe Burnett, former director of market research at Unchained and now director of Bitcoin Strategy at Semler Scientific, told Beincrypto that more companies will adopt Bitcoin. He added that it will become a fundamental component of the company’s capital structure over the next decade.
Meanwhile, many companies are committed to holding Bitcoin as a long-term financial asset. In fact, Strategy co-founder Michael Saylor has consistently advocated not to sell Bitcoin.
He even suggested that he would be burning the BTC key after his death. So, businesses are confident in Bitcoin, and many more are taking part in the trend, but the future cannot be predicted.
Whether this institutional surge leads to a bubble or solidifies the role of Bitcoin as a basis for a company’s capital structure depends on the market dynamics and the long-term stability of assets.
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