- U.S. financial conditions are at their loosest since 2022, creating a strong liquidity tailwind for Bitcoin and risk assets.
- Institutional inflows surge, with over $455M entering BTC/ETH ETFs and 46 new firms adding Bitcoin to their Q2 balance sheets.
- Bitcoin holds above $116K as Web3 growth accelerates and the White House prepares to unveil a full digital asset policy framework.
Bitcoin’s upward momentum is gaining strength as financial conditions in the U.S. continue to loosen. Over the past three years, this trend has remained consistent, creating a supportive environment for risk assets.
Econometrics data reveals that conditions are now the loosest they have been since 2022, with liquidity steadily improving. This environment encourages greater risk appetite and deeper capital allocation into digital assets.
Unlike short-term movements driven by derivatives and capital flows, Bitcoin’s broader rally is now being supported by the long-term liquidity backdrop that shapes asset allocation.
Liquidity Gives Bitcoin a Strong Uncertainty
The National Financial Conditions Index (NFCI) has moved deeper into negative levels for three straight years. A lower NFCI reading suggests easier access to capital and reduced market stress.
As per Ecoinometrics, this backdrop has provided a strong tailwind for Bitcoin. As liquidity increases, institutional investors and corporations are channeling more capital into Bitcoin rather than staying on the sidelines.
Notably, the current conditions reflect the most favorable liquidity backdrop since the last major rally in 2022. This improvement has coincided with Bitcoin consolidating above $116,000 for over two weeks, marking a period of strength amid positive macroeconomic shifts.
Institutional Accumulation Accelerates Across U.S. Markets
Institutions are playing a key role in this rally. Anchorage Digital has accumulated 10,141 BTC worth over $1.1 billion. Meanwhile, Strategy Inc. has added 21,021 BTC after raising $2.5 billion through the year’s largest U.S. IPO.
The company now holds 628,791 BTC in total. Combined net inflows into Bitcoin and Ethereum ETFs have topped $455 million this week alone. This wave of institutional activity aligns with the ongoing easing of financial conditions, making capital deployment into Bitcoin increasingly feasible.
Corporate adoption of Bitcoin has expanded fast in recent months. Public filings show that 46 new companies added Bitcoin to their balance sheets in Q2 2025. The total number of publicly listed firms holding Bitcoin is at 125, up 58% quarter-on-quarter.
Web3 Developments Gain Pace as Policy Framework Nears
As Bitcoin continues to hold key levels, the broader Web3 market has also gained momentum. Behind the scenes, blockchain infrastructure and decentralized platforms have advanced. Investor attention is now also shifting toward altcoins as innovation spreads across the sector.
Today, the White House is expected to unveil its first complete digital asset policy framework. Altogether, the loosening of U.S. financial conditions, strong institutional accumulation, and ongoing Web3 progress have positioned Bitcoin to benefit from the current market structure.
