Crypto institutional investors are ramping up holdings amid short-term concerns, even as experts tip a new cycle. Macro and geopolitical factors are deepening negative sentiment toward Bitcoin (BTC) and a handful of altcoins, leading to mass liquidations.
Bitcoin Holders Remain Resilient
A new Coinbase research report shows that the majority of investors are adding to their crypto holdings, while others maintain positions. About 62% of participants backed a positive stance for the market.
Notably, 70% of institutions said Bitcoin remains undervalued amid recent fluctuations that are steering the market’s trends. The total market cap plunged below $2.97 trillion as Bitcoin crashed to record monthly lows. The leading crypto is down 13.6% in the last 12 months with a $1.7 trillion market cap.
Trading above $87k, BTC bulls backed these fund managers, citing previous highs before macro hurdles. These highs were triggered by the massive adoption of spot BTC ETFs and institutional accumulation firms. For many, these metrics cannot be wiped out by a single bear phase.
“Around one-quarter of both institutions 26%) and non-institutions 21%) believe we are in the bear market (markdown) phase of the market cycle. This is a substantial increase from our last survey, when the figures were just 2% and 7%, respectively. Despite market weakness, most investors are sticking with or adding to their crypto allocations,” Coinbase researchers added.
Last year, Bitcoin hit multiple all-time highs, reinforcing bullish sentiment. Ethereum and other altcoins are now on the same downward trajectory, with President Trump’s tariff threat impacting sentiments.
Last week, institutional resilience was significant as whales picked up a large stash of assets. Whale activities also flipped Bitcoin’s 30-day performance into the green zone.
Per the survey, only 8% of participants would offload their assets if Bitcoin and other assets plunge an additional 10%. This gives retail investors a lifeline as institutional traders set their sights on long-term goals above a bear market.
If bull projections are accurate, Bitcoin price could soar above $100k in Q1 2026 without even dropping below the 10% point. On the other hand, a dip would take the price below the $85k resistance level, opening up more red signals.
It should be noted that institutions hinted they are taking more risks relative to their benchmarks, as over 60% projected an increase in Bitcoin dominance over the next six months. Meanwhile, 30% of participants said macro environments remain the highest risk factor, while 21% pitched low liquidity.
Source: https://zycrypto.com/institutional-investors-double-down-crypto-stake-amid-bear-market-fears/
