$XRP more broadly," he wrote.

Doung noted that the thesis is gaining traction with more companies adopting BTC corporate treasuries. Following the success of Michael Saylor's Strategy, Twenty One Capital, a new firm backed by Tether, Bitfinex, SoftBank, and a Cantor Fitzgerald affiliate, also plans to hold 42,000 BTC at launch.

Due in part to recent accumulation, liquidity in the spot BTC market has been "significantly drained," Dr. Kirill Kretov, lead strategist at trading automation platform CoinPanel, said in a Telegram note. According to the firm's proprietary blockchain analysis, a large portion of bitcoin liquidity has been withdrawn from actively transacting addresses, including exchanges, since November 2024, exposing markets to volatile price swings.

“The market is thin, vulnerable, and easily moved by large players," Kretov said. "Sharp swings of 10% up or down are likely to remain the norm for now."

Bitcoin's route to fresh records

While the route could be choppy, this week’s rally is likely the early innings of bitcoin's next leg higher to new records, said John Glover, chief investment officer of crypto lender Ledn