The Higher Bitcoin Goes, The Less Institutions Want It? Coinbase Executive Weighs In

Institutions that bought Bitcoin at $100,000 and $125,000 are showing even greater interest now that prices have dropped to around $60,000, according to Coinbase Head of Institutional Strategy John D’Agostino.

He made the remarks in a recent interview with CNBC, as Bitcoin trades around $63,500 after a sharp pullback last week.

No Sign Of Panic Selling Among Big Players

D’Agostino said he is unaware of any major institutional investor facing dangerous levels of leverage or imminent liquidation risk. Rather than cutting exposure, many large holders are reportedly looking to raise additional capital and expand their Bitcoin positions.

Family offices, sovereign wealth funds, and government investment entities in the Middle East are among those viewing the recent correction as a chance to buy at lower prices, D’Agostino said.

He noted that institutions have spent years studying Bitcoin and tend to grow more interested as prices fall, not less.

The backdrop to all this is a Bitcoin market that turned sharply lower over the past week. The asset dropped to around $59,500 after trading above $70,000 just days earlier, before recovering above $63,000.

ETF Exposure Holds Despite The Drop

Despite the steep decline, investors have kept more than $750 billion in exposure through spot Bitcoin ETFs, according to D’Agostino. Retail participation has dipped only slightly.

“I think both retail and institutional are signaling this is a long-term asset you want to hold,” he said during the interview.

CNBC host Joe Kernen raised several factors that may have contributed to the pullback — among them a risk-off environment, capital rotation into other assets, elevated interest rates, and slower-than-expected progress on regulatory clarity.

D’Agostino acknowledged these concerns are widely cited by market participants, but argued that price swings are normal for an asset class that behaves like a commodity.

Geopolitical Uncertainty Adds To The Pressure

He also addressed geopolitical headwinds, including tensions involving Iran and uncertainty surrounding the Strait of Hormuz, saying Bitcoin’s long-term investment case remains intact despite those pressures.

The improved market infrastructure and evolving regulatory framework, he added, make the current environment stronger than it was during previous downturns.

Bitcoin was trading at $63,841 at the time of publication, up 3.4% over the prior 24 hours, based on data from Coingecko.

Featured image from Silas Stein/picture alliance via Getty Images, chart from TradingView