Institutions go all in amid cryptocurrency panic selling the final hurdle before a rally
Institutions go all in amid cryptocurrency panic selling the final hurdle before a rally
The virtual asset market has faced an unprecedented wave of mass liquidations, fueling pessimism among investors that the era of cryptocurrencies has come to an end. However, major institutions view this downturn as an inevitable correction necessary for long-term growth and have begun large-scale accumulation.
According to cryptocurrency-focused media outlet Benzinga on February 6 (local time), the virtual asset market, including Bitcoin (BTC), has endured a harsh ordeal in which trillions of dollars in market capitalization evaporated within a single week. Investors are experiencing extreme fear and questioning whether cryptocurrency investing has reached its limits. Yet an analysis of historical data shows that periods of extreme fear have always served as a base-building phase for the next upward rally.
Blockchain analytics firm Santiment reported that whale investors have recently deposited large amounts of Bitcoin into exchanges, increasing selling pressure. In the past 24 hours alone, more than $2.6 billion worth of positions were forcibly liquidated, causing a sharp decline in open interest. While the rapid unwinding of leverage in the futures market can trigger short-term price drops, it also helps strengthen the market’s underlying fundamentals.
Institutional responses via BlackRock’s spot Bitcoin ETF have also drawn attention. Despite the price collapse, trading volume in IBIT surpassed $10 billion, setting an all-time high and indicating that institutions are treating this downturn as a buying opportunity. While retail investors engage in panic selling, large pools of capital are instead increasing portfolio allocations and reassessing asset value.
Expectations surrounding the pro-crypto stance of the Donald Trump administration and the potential for changes in Federal Reserve monetary policy are also key factors supporting the market’s resilience. The outlook suggests that support from President Donald Trump’s political base and the passage of related regulatory legislation could accelerate the institutional integration of the virtual asset market. Experts assess that cryptocurrencies are moving beyond a mere speculative tool to become a core pillar of the global financial infrastructure.
As major assets such as Ethereum (ETH) and XRP continue efforts to reclaim key support levels, market uncertainty is expected to gradually ease. Investors should refrain from emotional reactions, observe fundamental value shifts in the market, and prepare for the next emerging upcycle.
*Disclaimer: This article is for investment reference only, and no responsibility is assumed for any investment losses incurred based on it. The content should be interpreted solely for informational purposes.*
<저작권자 ⓒ 코인리더스 무단전재 및 재배포 금지>
|
  많이 본 기사
English 많이 본 기사
|
