Bitcoin briefly fell below $60,000, marking its lowest level since October 2024, but large institutions are continuing to accumulate during the downturn, according to Coinbase Head of Institutional Strategy John D’Agostino.
He said family offices and sovereign wealth funds are increasing their exposure, viewing the correction as a buying opportunity rather than a signal to exit positions.
Institutional exposure remains stable despite sharp decline
The cryptocurrency has declined by nearly 50% from its October 2025 peak above $126,000. Despite this, institutional exposure remains largely intact.
About $100 billion remains allocated in Bitcoin ETFs, with retail participation down only around 15% from peak levels. D’Agostino added that he has not observed forced liquidations or excessive leverage among major market players, noting that larger holders appear capable of injecting additional capital to maintain positions.
ETF outflows contrast with broader inflows
Research from Bernstein shows that spot Bitcoin ETFs have recorded roughly $2.6 billion in net outflows so far this year. However, this has not altered the long-term value outlook among institutions.
The data highlights a divergence in market behavior. While ETFs have seen persistent withdrawals—including a streak of over $4.3 billion in outflows across 13 consecutive sessions—other sources of capital have offset these moves.
Bernstein estimates that around $12 billion has flowed into Bitcoin in 2026 when accounting for corporate treasury allocations, with corporations emerging as the primary drivers of net inflows.
Corporate accumulation continues to grow
Corporate adoption remains a key pillar of demand. Strategy disclosed that it acquired an additional 1,550 Bitcoin worth approximately $101 million, bringing its total holdings to 845,256 BTC.
The purchase followed a minor sale of 32 Bitcoin at the end of May, the company’s first disclosed sale in four years. The move had sparked speculation after Chairman Michael Saylor suggested the firm might occasionally sell small amounts to test market reactions. Despite that, overall holdings continue to increase, reinforcing its long-term accumulation strategy.
Long-term holding trend remains strong
On-chain data indicates that 61% of Bitcoin’s circulating supply has not moved in over a year, signaling a strong preference for long-term holding despite recent price volatility.
This aligns with D’Agostino’s assessment that major holders are not facing liquidity stress and are navigating the downturn without forced selling.
Regulatory developments draw industry focus
Attention is also turning to regulatory developments in Washington. More than 200 organizations, including major blockchain platforms, have urged Senate leaders to bring the Clarity Act to a full vote.
The bill, which has already passed the House and advanced through the Senate Banking Committee, seeks to define the regulatory roles of the Securities and Exchange Commission and the Commodity Futures Trading Commission in overseeing digital assets.
Market outlook tied to macro and policy signals
Near-term market direction is expected to depend on both macroeconomic data and evolving capital flows. The upcoming U.S. inflation report could influence risk appetite, while continued monitoring of institutional activity and legislative progress will help clarify the broader trend.
Curious if this dip is a chance to accumulate? Explore our outlook in when is the best time to buy bitcoin.
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