Bitcoin has shown notable resilience in recent weeks, climbing back to the $87,000 level as broader market sentiment continues to evolve. Entering 2025, cryptocurrency is increasingly viewed less as a speculative trade and more as a strategic asset embraced by governments, corporations, and institutional investors. This shift has accelerated significantly over the past year, marking an important turning point for Bitcoin and the digital asset market as a whole.
To unpack these developments, Remy Blaire spoke with Patrick Liou, Director of Institutional at Gemini, who shared insights into how market structure, adoption, and investor behavior are changing. One central theme of the discussion focused on Bitcoin’s long-standing four-year cycle narrative and whether it still applies in today’s more mature digital asset environment.
Liou explained that as the market looks toward year-end and beyond, Bitcoin’s ecosystem is showing clear signs of expansion and diversification. The growth of institutional investment products, improved fiat-to-crypto access, and reduced volatility all point to a more stable market structure. According to Liou, these developments may ultimately weaken the predictive power of the traditional four-year cycle that has historically guided investor expectations.
Despite Bitcoin’s recent rebound, Liou acknowledged that 2025 has been marked by volatility across asset classes, including equities and commodities. While Bitcoin is projected to finish the year with negative returns, he characterized the current phase as a period of consolidation rather than decline. This consolidation, he suggested, could lay the foundation for renewed growth as structural adoption continues to deepen.
Digital asset treasury companies were another focal point of the conversation. Liou noted that these firms experienced rapid growth during the first half of 2025, driven largely by significant allocations to Bitcoin and Ethereum. However, the market is beginning to reach saturation. Going forward, these companies will need to demonstrate more than balance sheet exposure, proving their ability to innovate through financial engineering, capital markets strategies, and differentiated business models.
Looking ahead to 2026, Liou emphasized that political engagement around cryptocurrency is expected to intensify. As midterm elections approach, both political parties are increasingly acknowledging the importance of digital assets. Unlike prior years, when crypto policy often divided lawmakers, bipartisan efforts are now emerging in the Senate aimed at advancing regulatory frameworks that could directly shape the industry’s future.
A key theme from the discussion was Bitcoin’s evolving identity as “digital gold.” Liou described Bitcoin as a superior store of value compared to traditional gold due to its portability, divisibility, and liquidity. He suggested that sovereign nations may eventually reallocate portions of their gold reserves into Bitcoin as part of broader diversification strategies and efforts to reduce reliance on the US dollar.
Gemini’s recent push into prediction markets was also highlighted as a notable innovation. After securing CFTC licensing, Gemini introduced a platform allowing users to make outcome-based predictions while hedging market exposure. Liou believes the full impact of prediction markets will become clearer in 2026, with crypto-driven platforms leading broader adoption.
As the digital asset landscape continues to evolve, Liou’s insights reflect a market moving toward maturity rather than speculation. Institutional participation, political engagement, and financial innovation are reshaping Bitcoin’s role within the global financial system.
In conclusion, Bitcoin’s recovery to $87,000, combined with shifting investor behavior and regulatory momentum, underscores a crypto market undergoing structural transformation. As governments, institutions, and technology firms increasingly integrate digital assets into long-term strategies, Bitcoin is positioning itself as a core component of the modern financial ecosystem rather than a fringe asset class.