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As a result, as companies like Strategy and others continue to grow, their increasing market capitalizations lead to even more capital allocation from these index funds due to their market cap-weighted nature. This dynamic creates a powerful feedback loop: Bitcoin, hailed as the best form of money, begins to populate the balance sheets of companies becoming part of significant index funds.
This integration of Bitcoin into mainstream financial systems begins to operate quietly yet effectively. When Bitcoin's price rises, so does the market cap of the companies holding it. As their market valuations climb, passive funds are compelled to purchase more shares, thereby integrating Bitcoin into the investment portfolios of everyday Americans—often without the awareness of most investors.