Bitcoin eyes $88K retest amid high volatility and macro data week

Norway’s $1.7 trillion sovereign wealth fund, Norges Bank, reported a $40 billion loss in the first quarter of 2025, largely due to declines in U.S. technology stocks.  

The fund’s indirect Bitcoin (CRYPTO:BTC) exposure through stock holdings reached approximately $356 million by the end of 2024, raising concerns about potential sell pressure amid economic uncertainty and global trade tensions.  

Despite these losses and market volatility, it appears unlikely that Norges Bank will increase direct Bitcoin investments or purchase Bitcoin exchange-traded funds (ETFs) as a risk hedge.  

The fund’s investment portfolio primarily consists of stocks, bonds, and real estate assets, including retail, industrial, renewable energy, and logistics properties worldwide.  

Norges Bank sold all its gold holdings by early 2004, missing out on gold’s subsequent outperformance relative to the S&P 500.  

Equities currently account for 71.4% of the fund’s total investments, exposing it to risks from ongoing trade conflicts and recession fears.  

CEO Nicolai Tangen described the fund as “mainly index-driven,” following the FTSE Global All Cap Index, which is heavily weighted toward North American companies (65%).  

Deputy CEO Trond Grande noted some flexibility for active investments, with the fund’s exposure to U.S. tech stocks below the benchmark for the past 18 months.  

Some of these holdings include companies with significant Bitcoin on their balance sheets, such as Strategy, Mara Holdings, Coinbase, and Riot Platforms, contributing to the fund’s indirect Bitcoin exposure.  

While direct Bitcoin ETF purchases seem unlikely without a mandate change, increasing exposure to Bitcoin-related companies remains a possibility.  

This contrasts with other sovereign funds like Abu Dhabi’s Mubadala Investments, which holds $437 million in BlackRock’s iShares Bitcoin ETF, reflecting growing institutional interest in crypto as a hedge.  

Norges Bank generated $222 billion in profits in 2024, and its stock portfolio declined only 1.6% in Q1 2025, underscoring its resilience despite recent market challenges.  

The fund’s future approach to Bitcoin exposure will depend on evolving market conditions, regulatory developments, and strategic priorities.

At the time of reporting, the Bitcoin price was $94,715.07.