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The recent decline of the leading cryptocurrency has not triggered panic among major investors. They have continued to invest in Bitcoin, albeit discreetly, according to experts from the European digital asset management firm CoinShares.
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Only a few investment firms and hedge funds have slightly reduced their positions in Bitcoin, the analysts reported. They noted that the proportion of large capital investing in the first cryptocurrency has continued to rise.
A significant portion of the sales recorded in the last quarter of the previous year was likely linked to profit-taking by long-term holders, rather than a mass exit of large players from the asset, CoinShares specialists suggested. The analysts reminded that the cryptocurrency market exhibits a certain pattern: during bearish cycles, the asset gradually shifts from short-term speculators to investors with a long-term strategy.
The emergence of Bitcoin-based exchange-traded funds (ETFs) now allows for observation of whether such capital redistribution is occurring among corporate market participants.
At the same time, the statistical base regarding market players remains limited, experts lament. To draw more balanced conclusions, it is necessary to await new quarterly reports from investment companies and funds, which will reflect more pronounced market fluctuations, including the decline of Bitcoin’s price to around $60,000. This data will enable a more accurate assessment of corporate investors’ behavior in a high-volatility environment, CoinShares representatives explained.
Previously, the CEO of investment firm VanEck, Jan van Eck, stated that Bitcoin’s price is close to the minimum levels of the current cycle and that the bearish trend may come to an end by the year’s close.
