Lates News

Many institutional investors believe that Bitcoin still has further room for decline. The overall market sentiment is cautious, with macroeconomic uncertainty, tightening liquidity, ETF outflows, and funds shifting towards AI and other areas potentially putting pressure on BTC prices. David Grider, partner at Finality Capital, predicts that this market bottom may not occur until the end of the third or fourth quarter of 2026, and believes that Bitcoin may bottom out in the range of $45,000 to $55,000. Even investors who believe the market is nearing its bottom do not expect a strong rebound in the short term. Research shows that many funds are currently increasing cash positions, reducing directional risk exposure, and adopting more market-neutral, hedging, and derivative strategies to manage volatility. Meanwhile, institutional funds continue to focus on DeFi, AI, and tokenized assets with strong fundamentals rather than solely allocating to Bitcoin. Institutions generally view high interest rates, liquidity tightening, geopolitical risks, and capital flowing into growth sectors like AI as the main downward risks facing the market. Some funds also consider leveraging financing models and quantum computing developments as emerging risk factors in this cycle. Fund surveys regarding year-end trends did not provide Bitcoin price targets above $100,000. Some institutions expect BTC to fluctuate between $40,000 and $80,000 within the year, and believe that improving rate cut expectations, warmer liquidity, and progress on the US "CLARITY Act" may become crucial catalysts for market recovery.