Institutional Players May Trigger Bitcoin’s Next Bear Market — Here’s Why Experts Are Worried
Wall Street's crypto love affair could turn toxic—fast.
As institutional money floods into Bitcoin, some analysts warn the very players driving today's rally might spark the next crash. When hedge funds and corporate treasuries start treating BTC like just another risk asset, their herd mentality could amplify sell-offs.
The irony? The 'decentralization purists' spent years begging for institutional adoption. Now they might get exactly what they asked for—complete with the same reckless volatility that plagues traditional markets. Just ask anyone who lived through 2008.
One hedge fund manager quipped: 'Turns out diamond hands look different when you're playing with other people's pensions.'
Why New Corporate Entrants Could Usher In The Next Bear Market
In a new post on the social media platform X, crypto analyst Burak Tamac explained how the new corporate buyers of bitcoin could be behind the next Bitcoin bear market. The crypto pundit made this claim in response to a revelation by finance expert Lyn Alden about business intelligence firm Strategy’s current position in the BTC market.
Alden shared a key takeaway from an interview with Strategy’s Chairman Michael Saylor, who revealed that the firm can still meet obligations (like preferred dividends) after even up to an 80% correction for the price of Bitcoin. The finance expert mentioned that Saylor acknowledged that only a deeper correction could pose potential challenges.
Saylor said on the livestream:
I think our structure is smooth and we wouldn’t miss a single dividend payment on an 80% drawdown. On a 90-95% drawdown, in theory you might suspend something for a little bit of time but you’d eventually get back current on it.
Tamac revealed that Strategy’s market positions are somewhat safe so long as the price of Bitcoin never returns to the $22,000 level. According to the crypto analyst, it’s a different story for other companies, as they are relatively newer to the market and their acquisition prices are higher than Strategy’s.
Unlike Saylor’s Strategy, which made its first purchase before the 2020 bull run and survived the 2022 bear season, Tamac revealed that the newer companies acquired their first BTC at prices closer to the top. As a result, Tamac believes that the fresh institutional entities are more likely to usher in the Bitcoin bear market due to their increased propensity to capitulate should the premier cryptocurrency’s price witness a sharp decline.
Bitcoin Price At A Glance
As of this writing, the price of BTC sits around $112,860, reflecting no significant movement in the past day. According to data from CoinGecko, the market leader is down by more than 4% in the past seven days.
