Intesa Sanpaolo has made history as the first Italian financial institution to invest in Bitcoin (BTC), acquiring 11 BTC for approximately $1.02 million on January 13th, 2025. This move follows closely on the heels of Bitcoin surpassing the $100,000 threshold in December, with the acquisition coming just over a month after that milestone. Timing Is Everything The news broke through a leaked internal email by Niccolò Bardoscia, the Head of Digital Assets Trading at Intesa Sanpaolo. Though Intesa Sanpaolo itself has yet to make any kind of public announcement, the bank did confirm the Bitcoin purchase to the media outlet Wired. The timing of the investment coincides with a surge in institutional interest in Bitcoin. On January 13th, Bitcoin exchange reserves dropped to a near seven-year low as crypto hedge funds capitalized on the price dip, further fueling expectations of a supply shock. This phenomenon occurs when strong demand by buyers meets a dwindling supply of BTC, leading to potential price gains. Buying The Dip Bitcoin remained below the $100K psychological barrier since January 7th, as institutional investors seized the opportunity to buy BTC at a lower price. While some analysts predict an end to the current correction, BTC remains susceptible to macroeconomic factors in the absence of favorable regulatory news. According to Bybit, Bitcoin and crypto have become reactive to macroeconomic events at the close of 2024 and into 2025, especially with the Federal Reserve not making as many rate cuts in the new year. Despite these macroeconomic concerns, some analysts anticipate that Bitcoin could reach a new cycle high above $150,000 by late 2025, spurred by a projected $20 trillion increase in global money supply, which could drive $2 trillion of new investment into BTC.
