October crash reshaped institutional crypto strategy, O’Leary says

Bitcoin has been stuck in a tight range around $68,000 for several days now, showing little sign of a decisive breakout.

The leading cryptocurrency recently wrapped up a session close to $68,030 after pushing as high as $69,061 only to retreat to $67,703 amid solid trading activity that surpassed $31 billion.

Right now Bitcoin sits near $67,300, marking a small drop of about 0.5% from the previous day. That level leaves it roughly 46% off the all-time peak of $126,000 reached back in October.

Why the October crash changed everything for institutional investors

On October 10 a sharp downturn liquidated $19 billion worth of leveraged bets throughout crypto, setting off widespread selling pressure that hammered prices across the board. Smaller altcoins bore the worst of it, with many plunging 80% to 90% and failing to claw back much ground since then.

Kevin O’Leary, the well-known investor and Shark Tank figure often called “Mr. Wonderful,” believes the October wipeout fundamentally altered how big players view the space.

“Back in October when everything melted, Bitcoin got slaughtered and the rest of the market was wiped out, some coins down 80–90% and they never recovered,” O’Leary said in recent comments shared on X and in media interviews.

“Why? Because institutions finally did the math and realized if you want 90% of the upside and volatility in crypto, you only need Bitcoin and Ethereum.”

O’Leary himself acted on that view last month by slashing 27 positions from his crypto holdings. He narrowed his focus to what he terms the “Two Girl Dance”, Bitcoin and Ethereum, while also putting money into the energy infrastructure needed to run those networks.

In his eyes, the altcoins that got dumped were simply low-quality and carried too much unnecessary risk for serious portfolios.

That kind of repositioning mirrors what many professional managers are doing. Major funds seem to be stepping away from riskier tokens and concentrating instead on the two biggest names by market cap. Even with that tighter approach, their combined exposure to Bitcoin and Ethereum still adds up to meaningful amounts.

Quantum computing fears and the road to clearer regulation

A big reason institutions stay on the sidelines involves worries about quantum computing. In theory, future quantum machines might break through the elliptic curve cryptography that protects Bitcoin. O’Leary brought this up again in posts and video segments this month, pointing out that the possibility alone is enough to make portfolio managers cap their crypto bets at around 3% until more solid solutions appear.

The Bitcoin developer community isn’t sitting idle. They recently incorporated Bitcoin Improvement Proposal 360, known as BIP-360, into the official BIP repository. This introduces a fresh output format called Pay-to-Merkle-Root, or P2MR.

The change eliminates a particular spending route in Taproot addresses that could become a weak point against quantum attacks, all while leaving script-based features fully available. People following the space see this as a solid first move to strengthen defenses, with additional improvements likely on the way.

At the same time, some of the larger platforms in the industry have formed dedicated teams to keep an eye on evolving cryptographic challenges over the long haul.

When it comes to rules and oversight, O’Leary remains hopeful. He expects Congress to approve legislation that spells out a proper market structure for crypto ahead of the midterm elections.

Right now, the market feels like it’s paused. Bitcoin trades in the neighborhood of $67,700 without sellers dumping in fear or buyers rushing to pile in. Most institutional players look ready to hold steady and watch how the regulatory situation unfolds alongside progress on addressing quantum risks before they commit larger sums.

That cautious stance makes sense given the mix of factors at play. The October events exposed how fragile leveraged plays can be, especially outside the top assets.

At the same time, the promise of better rules could open doors wider, while the quantum discussion reminds everyone that long-term tech threats deserve attention.

Until then, the narrow range around current levels feels likely to persist.

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