Bitcoin has experienced a remarkable price increase, doubling since the same time last year, amidst a sudden crisis engulfing the Federal Reserve. The cryptocurrency market is currently anticipating significant daily buying pressure, ranging from $20 million to $28 million, yet Bitcoin has largely remained stagnant since December. After reaching a new all-time high in August, its price has fluctuated back to levels near where it began the year.
Amid increasing anxiety among traders about future market developments, Michael Saylor’s bitcoin acquisition firm, Strategy, could be positioned for a significant boost. This potential turnaround comes as Eric Trump, son of former U.S. President Donald Trump, asserts that the “floodgates are starting to open” for Bitcoin.
Strategy, which boasts a substantial portfolio of 630,000 bitcoins valued at approximately $70 billion, could potentially be added to the S&P 500 stock market index. This move, should it be approved, would mark a notable milestone as it would be the first bitcoin treasury company included in the benchmark index. In December, Strategy was added to the Nasdaq 100, a decision that surprised many industry skeptics.
The anticipated inclusion in the S&P 500 would take effect on September 19, opening the door for some of the largest index funds and exchange-traded funds (ETFs) to acquire shares in Strategy, effectively mirroring the index’s performance. However, despite a fascinating year for the firm—with support from the Trump family, multiple copycat companies emerging in the space, and evolving Bitcoin ETFs on Wall Street—Strategy’s share price has plummeted by 30% from its peak in November, causing it to experience a stagnant trajectory going into 2025.
For Strategy to qualify for the S&P 500, it must meet specific criteria, including a market capitalization exceeding $8.2 billion, average daily trading volumes above 250,000 shares, a public float greater than 50%, and having positive earnings both for the latest quarter and on a trailing twelve-month basis. Despite fulfilling these requirements, the S&P Dow Jones Indices committee retains discretion over any changes, and there is speculation that they might consider Strategy’s bitcoin acquisition model unsuitable for the index.
On a related note, shares of American Bitcoin, a bitcoin mining company backed by the Trump family, have soared almost 20% during its debut on Nasdaq, rising to just over $8 per share. This success has reportedly elevated Eric Trump’s stake to an estimated $950 million at its peak. Emphasizing the burgeoning interest and confidence in the cryptocurrency sector, Eric Trump remarked to Bloomberg, “The floodgates are starting to open,” and echoed similar sentiments in interviews, declaring that “crypto is exploding.”
