2025 has cemented itself as a landmark year for Bitcoin (BTC), marking a transformative chapter in the evolution of digital assets. From record-breaking price milestones to sweeping institutional adoption and pivotal regulatory developments, the crypto landscape has matured significantly. This article explores the key events shaping Bitcoin’s trajectory, including the explosive success of spot Bitcoin ETFs, MicroStrategy’s aggressive accumulation strategy, Crypto.com’s U.S. institutional expansion, Russia’s targeted mining restrictions, and the IRS’s firm stance on staking taxation.
The Rise of Spot Bitcoin ETFs: A Game-Changer for Mainstream Finance
Bitcoin’s ascent into the financial mainstream reached a critical milestone in January 2025 with the SEC approval of 11 spot Bitcoin ETFs. This regulatory green light ended years of speculation and paved the way for unprecedented institutional access to BTC.
The market response was historic. By year-end, Bitcoin-focused ETFs had collectively attracted over $135 billion in net inflows, making it one of the most successful product launches in financial history. This surge was driven primarily by institutional investors seeking regulated exposure to digital assets without the complexities of self-custody.
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The influx of capital played a pivotal role in propelling Bitcoin’s price to a record high of $100,000 in December 2025, a milestone fueled by sustained demand from professional buyers and long-term holders. This price breakthrough wasn’t just symbolic—it reflected growing confidence in Bitcoin as a legitimate asset class.
Institutional Demand Fuels OTC Growth and Corporate Balance Sheet Shifts
As ETFs dominated headlines, over-the-counter (OTC) trading volumes also surged, reflecting strong behind-the-scenes activity. Kraken reported a 220% year-over-year increase in its OTC desk volume, highlighting the growing preference among large investors for private, high-value transactions to avoid market slippage.
Tim Ogilvie, Head of Kraken Institutional, noted: "Long story short, OTC is doing very well." This sentiment echoes across the industry—large-scale investors are increasingly treating Bitcoin as a strategic reserve asset.
Beyond ETFs and OTC desks, public companies have continued to embrace Bitcoin on their balance sheets—a trend led by MicroStrategy. Since 2020, the company has been the most aggressive corporate adopter, amassing over 444,000 BTC by late December 2025.
MicroStrategy’s Ambitious “21/21 Plan” and Shareholder Strategy
In a bold move to double down on its Bitcoin strategy, MicroStrategy held a special shareholder meeting to approve an expansion of its authorized shares. The goal? Greater flexibility to raise capital through stock sales and fixed-income securities to fund further BTC acquisitions.
This initiative supports the company’s "21/21 Plan", an ambitious roadmap to purchase $42 billion worth of Bitcoin over the next three years. The strategy hinges on leveraging equity and debt markets while maintaining operational agility in volatile conditions.
MicroStrategy’s stock performance in 2025 reflected investor confidence—its share price soared over 420%, largely driven by its unwavering commitment to Bitcoin. The company’s CEO, Michael Saylor, continues to advocate for BTC as a superior treasury reserve asset compared to fiat currencies.
While critics argue this level of corporate dependence on Bitcoin contradicts its decentralized ethos, the network itself remains unchanged—decentralized, borderless, and permissionless—enabling anyone, anywhere, to store and transfer value securely.
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Crypto.com Launches U.S. Institutional Custody Trust
Expanding its footprint in North America, Crypto.com launched Crypto.com Custody Trust Company, a dedicated institutional-grade custody solution for U.S. and Canadian clients. This move strengthens its compliance framework and positions the firm as a trusted partner for asset managers, hedge funds, and high-net-worth individuals.
The new trust company ensures that client assets are held under U.S. regulatory oversight, enhancing security and transparency. Migrating digital assets to this regulated entity underscores Crypto.com’s commitment to building robust infrastructure aligned with evolving financial regulations.
Notably, in December 2025, Crypto.com CEO Kris Marszalek met with U.S. President-elect Donald Trump at Mar-a-Lago to discuss national cryptocurrency policy—highlighting the growing influence of major crypto platforms in shaping regulatory discourse.
Russia Imposes Six-Year Mining Ban in 10 Regions
In a significant regulatory development, Russia enacted a six-year ban on cryptocurrency mining across 10 regions, effective from January 1, 2025, through March 2031. Affected areas include Dagestan, Chechnya, and parts of Donetsk—regions where unregulated mining operations have strained local energy grids.
Additionally, seasonal restrictions will be enforced in energy-intensive zones like Irkutsk, Buryatia, and Zabaykalsky Krai from November to March each year to prevent winter power shortages. Unlike earlier proposals calling for nationwide bans, this targeted approach allows continued operations in less critical areas while curbing excess consumption where it matters most.
Irkutsk—a historical mining hub—will face partial rather than total restrictions, signaling a balanced effort to regulate rather than eliminate the industry. These measures aim to reconcile energy sustainability with technological innovation in the blockchain space.
IRS Maintains Stance: Staking Rewards Are Taxable Income
The U.S. Internal Revenue Service (IRS) reaffirmed its controversial position that crypto staking rewards are taxable upon receipt, not upon sale—a decision that could set a critical legal precedent.
This stance was upheld in the ongoing case of Joshua and Jessica Jarrett, who challenged the IRS after receiving staking rewards from Tezos (XTZ). The couple argued that staking rewards should be treated like property, taxable only when sold or exchanged. However, the IRS maintains that such rewards constitute ordinary income at fair market value when received.
This case—originating from tax filings beginning in 2021—remains unresolved but is closely watched by taxpayers and legal experts alike. A final ruling could define how millions of U.S. crypto users report passive income from proof-of-stake networks.
Frequently Asked Questions (FAQ)
Q: Why did Bitcoin reach $100,000 in 2025?
A: The price surge was driven by institutional demand following the approval of spot Bitcoin ETFs, massive capital inflows into BTC-focused funds, and strategic accumulation by corporations like MicroStrategy.
Q: Are staking rewards really taxable immediately?
A: According to the IRS, yes. Staking rewards are considered taxable income at their market value when received—even if you don’t sell them immediately.
Q: Is MicroStrategy still buying Bitcoin?
A: Yes. The company has approved expanding its share issuance to raise capital under its "21/21 Plan" and plans to continue purchasing Bitcoin aggressively through 2027.
Q: Can U.S. institutions use Crypto.com’s new custody service?
A: Yes. Crypto.com Custody Trust Company is specifically designed for U.S. institutions and high-net-worth individuals seeking secure, regulated custody solutions.
Q: Why did Russia ban mining in certain regions?
A: To prevent energy shortages and grid instability caused by unregulated mining operations, particularly during winter months when power demand peaks.
Q: How do OTC trades impact Bitcoin’s price?
A: Large OTC transactions allow institutions to buy or sell significant amounts of BTC without affecting public market prices directly, providing stability and reducing volatility.
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