Institutions held firm even in the crash… the truth behind Bitcoin “panic selling”
Institutions held firm even in the crash… the truth behind Bitcoin “panic selling”
As Bitcoin (BTC) takes a breather around the $70,000 level, a new assessment suggests that the turmoil following the sharp drop is closer to a “crisis of confidence” than a structural breakdown.
According to investment-focused media outlet Yahoo Finance on February 10 (local time), Bitcoin has continued to fluctuate near $70,000 after experiencing rapid sell-offs and rebounds last week. Prices briefly slipped to the $61,000 range intraday before recovering on the back of bargain buying, but volatility remains elevated.
Bitcoin is currently down about 44% from its all-time high of approximately $126,000 recorded in October last year. At that time, forced liquidations and whale selling combined to trigger a sharp downturn, and last week selling pressure intensified further as Bitcoin posted its worst daily drop since November 2022.
Gautam Chhugani, an analyst at Bernstein, described the recent price adjustment by saying, “The current Bitcoin price action is merely a confidence shock, and nothing has broken systemically.” He noted that while Bitcoin and cryptocurrencies have attracted relatively less attention amid artificial intelligence becoming the market’s central theme, historically this is a phase when bearish arguments against Bitcoin are at their weakest.
He specifically cited spot ETF flows as evidence. Even during last week’s sharp sell-off, net outflows from Bitcoin spot ETFs amounted to only about 7%, while the price correction reached roughly 50%. He added that concerns over quantum computing potentially threatening Bitcoin’s cryptographic system are unlikely to materialize in the near term, and that the network has sufficient capacity to respond, supported by major institutions such as Strategy, BlackRock, and Fidelity.
While the possibility of additional corrections remains open, the outlook is still resolutely bullish. Chhugani forecast that Bitcoin could regain momentum and reach $150,000 by the end of the year after setting a new all-time high. Previously, Sean Farrell of Fundstrat also said that while he recently increased Bitcoin’s net buy allocation within his portfolio to 80%, he is still prepared to tolerate a potential pullback into the $50,000 range if necessary.
*Disclaimer: This article is for investment reference only, and no responsibility is taken for investment losses incurred based on it. The content should be interpreted solely for informational purposes.*
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