Extreme Fear On Bitcoin, But Institutions Are Accumulating
Searches for “bitcoin to zero” are exploding on Google Trends. The climate thus reflects a rare panic. While the market doubts, institutional investors are nevertheless strengthening (and quietly!) their positions on BTC.
In brief
- Extreme fear hits bitcoin after a sharp market drop.
- Institutions accumulate bitcoin despite retail investor panic.
Bitcoin under pressure: fear dominates the crypto market
According to data, the BTC price has dropped about 15% in a few days. Enough to revive the specter of the bear market. Proof: alarmist queries peak at levels comparable to the FTX period on Google Trends.
In bitcoin history, these emotional peaks often coincide with capitulation phases. The fact is that the crypto market operates in cycles. Each cycle alternates between euphoria and doubt. During previous shocks, extreme fear sometimes preceded a turnaround.
Admittedly, total capitalization is declining. Also, short-term traders are pulling back. Yet, bitcoin retains its dominance in the crypto market. A resilience that can only intrigue crypto analysts.
Institutions accumulate bitcoins during the panic
While bitcoin worries retail investors, institutional investors adopt the opposite strategy. Several on-chain indicators indeed suggest a progressive accumulation by whales.
This dynamic recalls the low phases of the previous market cycle. During bear market periods, professional players often take advantage of volatility to strengthen their BTC positions.
The contrast is striking. On one side, panic dominates public discourse. On the other, flows show strategic confidence. Some observers already speak of a possible market bottom, without confirming an immediate turnaround towards a bull market.
Bitcoin is also approaching key structural phases like the halving. This data fuels long-term strategies.
Institutions mainly scrutinize capitalization, liquidity, and whale behavior. Their approach differs from emotional trading. They think in broad horizons. For them, bitcoin therefore remains a strategic asset of the crypto market.
One thing is certain: bitcoin is going through an intense tension phase. Fear is everywhere. The next move will depend on market sentiment as well as the crypto market’s ability to absorb the shock. Stay tuned closely…
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My name is Ariela, and I am 31 years old. I have been working in the field of web writing for 7 years now. I only discovered trading and cryptocurrency a few years ago, but it is a universe that greatly interests me. The topics covered on the platform allow me to learn more. A singer in my spare time, I also cultivate a great passion for music and reading (and animals!)
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.