Bitcoin Below $70K Spurs Investor Split, Institutions Buy

Bitcoin Sell-Off Sees Conflicted Sentiment, Strong Institutional Inflows Amid Uncertainty

  • Bitwise CEO Hunter Horsley notes a divergence in market sentiment, with long-time holders feeling unsure while institutions see a buying opportunity.
  • Bitcoin is currently trading in sync with other liquid macro assets like Gold and silver amid a broad market sell-off.
  • Despite the price drop, institutional demand remains strong, with Bitwise seeing over $100 million in inflows in a single day this week.

Bitwise CEO Hunter Horsley provided a nuanced view of Bitcoin’s recent price decline during a CNBC interview on Friday, highlighting a stark contrast in investor psychology. He stated that while long-time holders are feeling unsure, institutional investors are “seeing prices they thought that they’d forever missed.”

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Consequently, Horsley acknowledged the downturn is unusual given growing regulatory clarity and institutional interest. Bitcoin is down 22.60% over the past month, trading around $69,635. He described Bitcoin as “getting swept up” with other liquid macroassets in a bear market.

Meanwhile, traditional safe havens have also retreated sharply from recent highs. Gold has fallen 11.43% from its peak, according to Trading Economics. Silver has experienced an even steeper decline of 35.95% from its all-time high.

However, Horsley pointed to resilient institutional demand as a counterbalance. Bitwise, which manages over $15 billion, saw more than $100 million in inflows on Monday alone. Retail curiosity has also surged, with worldwide Google searches for “Bitcoin” hitting a 12-month high, data shows. This activity underscores Horsley’s observation that “there’s a lot of volume, and there are sellers and buyers.”

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