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Bitcoin Updates: France's Bitcoin Holdings Spark Digital Gold Frenzy, Limited Supply Drives Price Upward

Bitcoin Updates: France's Bitcoin Holdings Spark Digital Gold Frenzy, Limited Supply Drives Price Upward

Bitget-RWA2025/11/01 21:08
By:Bitget-RWA

- France's UDR party proposes a 2% national Bitcoin reserve (420,000 BTC) via mining, tax payments, and asset seizures to enhance financial sovereignty. - Corporate adoption accelerates as ZOOZ Strategy Ltd. adds $10M BTC, joining BlackRock's ETF and Fidelity's $30.2B inflows, diversifying institutional reserves. - Growing institutional demand tightens Bitcoin's supply dynamics, with 2% of total BTC locked in reserves, pushing prices up 6.7% weekly amid declining exchange balances. - Analysts project $200,

Bitcoin Supply Tightens as Institutional Interest Grows

The Union of the Right for the Republic (UDR) in France has put forward a significant legislative proposal to create a national

(BTC) reserve, with the goal of accumulating 2% of the total supply—about 420,000 BTC—over the next 7 to 8 years, . Spearheaded by UDR leader Eric Ciotti, the plan aims to diversify France’s foreign reserves and strengthen economic independence by leveraging “digital gold.” Funding would come from public Bitcoin mining using excess nuclear and hydroelectric power, tax payments in BTC, and assets seized in legal cases, according to Bitcoinist. Although analysts are skeptical about the bill’s immediate prospects due to UDR’s limited influence in parliament, the proposal highlights the increasing institutional focus on Bitcoin as a strategic holding.

Bitcoin Updates: France's Bitcoin Holdings Spark Digital Gold Frenzy, Limited Supply Drives Price Upward image 0

Corporations are also ramping up their Bitcoin acquisitions.

Ltd., the first company listed on both Nasdaq and TASE, recently purchased $10 million in Bitcoin, bringing its total holdings to 1,036 BTC worth $115 million, . CEO Jordan Fried described Bitcoin as a “robust store of value,” despite some concerns about the company’s liquidity ratios. This move reflects a broader trend of businesses allocating more capital to Bitcoin to protect against inflation and diversify their assets.

Rising institutional demand is putting additional strain on Bitcoin’s available supply. With up to 420,000 BTC—around 2% of all coins—potentially being held in sovereign and corporate treasuries, market liquidity is tightening. This scarcity theme is reinforced by falling exchange balances and increased on-chain activity, indicating ongoing accumulation by investors,

. Brave New Coin analysts point out that Bitcoin’s price jumped 6.7% over the past week, while gold dropped 6.86%, as investors shift toward riskier assets.

Industry leaders’ forecasts are adding to the bullish outlook. Robert Kiyosaki and Michael Saylor anticipate Bitcoin could hit $200,000 by the end of the year,

. Technical experts note that breaking above $120,000 could spark a rally toward $143,000, while holding the $112,000 support level is crucial, . The Federal Reserve’s upcoming interest rate decision is adding uncertainty, with a 98.3% chance of a rate cut expected to boost risk appetite and enhance Bitcoin’s role as an inflation hedge, TradingView adds.

Institutional participation is also reshaping the market. BlackRock’s Bitcoin ETF and Fidelity’s involvement have brought in $30.2 billion in yearly inflows, despite recent market swings, according to recent commentary. Meanwhile, regulatory progress—such as Solana’s ETF approval and Visa’s expansion of stablecoin services—demonstrates the growing mainstream acceptance of crypto, Bitget’s analysis notes.

Bitcoin is currently trading close to $115,565, with bulls targeting $120,000 as the Federal Reserve’s policy meeting nears, Brave New Coin reports. While short-term volatility persists, the combination of institutional buying, supply limitations, and favorable macroeconomic trends could set the stage for a breakout in Q4 2025,

.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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