Bitcoin Institutional Demand Holds Despite Market Crash
Bitwise research chief Ryan Rasmussen said 15 major institutions held or increased their Bitcoin positions as the cryptocurrency fell from about $125,000 to $60,000. The group included pension funds, university endowments, foundations and sovereign wealth funds.
Bitwise said institutions increasingly view Bitcoin as a hedge against fiat currency depreciation, similar to gold, rather than as a short-term speculative asset. Reported allocations ranged from 2% to 8%, with Wells Fargo’s exposure estimated at 2% to 3%. The firm also claimed some sovereign wealth funds were reducing gold holdings and reallocating capital to Bitcoin, although it provided no independently verified transaction data.
The research attributed part of Bitcoin’s resilience to spot Bitcoin ETFs, which have broadened institutional access. Weekly ETF inflows reportedly reached about $2.5 billion. Bitwise suggested that $60,000 may have been a market floor, but traders should treat that view as unconfirmed. Persistent institutional demand is a long-term supportive signal, while short-term Bitcoin volatility remains likely.
Bullish
The news is bullish for Bitcoin because it indicates that major institutions did not capitulate during a sharp decline, and some reportedly added to their positions. Continued spot Bitcoin ETF inflows could provide a steady source of demand and reduce selling pressure during future downturns. Institutional allocations also suggest that Bitcoin is gaining acceptance as a portfolio diversification and inflation-hedging asset.
In the short term, the reported $60,000 floor and ETF inflows may improve market sentiment and encourage dip buying. However, these claims rely largely on Bitwise’s research, and the proposed floor is not confirmed. ETF flows can reverse, while macroeconomic conditions and profit-taking may still trigger volatility. The longer-term signal is constructive, but it does not eliminate downside risk.