Still Bitcoin’s Most Underrated Bull Market Driver

Actionable Market Insights

Author

10x Research
May 19, 2025

Despite Bitcoin reaching near all-time highs, the sentiment among crypto natives sounds as if prices are still around $30,000. Many have tried to short Bitcoin over the last few weeks, while others are underinvested, and some have wasted valuable time dabbling in altcoins. This shows that many people are still underestimating the clear driver of this bull market.

Bitcoin is surging, but it’s not crypto-native traders driving the rally—it’s traditional finance (TradFi) retail investors. Companies like MicroStrategy and Metaplanet have mastered a strategy of selling overvalued shares to buy even more Bitcoin. Despite being a major player in the Bitcoin market, institutional ownership of MicroStrategy remains relatively low at 46%, compared to 62% for Apple and 73% for Microsoft. MicroStrategy shareholders have experienced significant dilution, with the number of shares outstanding increasing by 54% over the past year.

But what happens when retail demand fades? Why are investors paying massive premiums for Bitcoin exposure through stocks? And can this cycle continue? Our latest analysis reveals the mechanics, risks, and hidden forces that fuel Bitcoin’s rise.

MicroStrategy share price (LHS) - relative to Bitcoin (RHS)

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