Bitcoin is experiencing its worst sell-off since the FTX crash, losing nearly half its value.
Its market capitalization has shrunk by more than $1 trillion. However, despite the panic, experts see a silver lining in the "institutional ruins," Bloomberg reports.
Unlike the 2022 crypto winter, when the crash was accompanied by bankruptcies at giants like FTX, Celsius, and Three Arrows Capital, this time the infrastructure has held up. Exchanges are operating, and the largest US banks are not only staying open but are accelerating the launch of crypto products.
"Nothing is broken, there are no skeletons in the closet," asserts Gautam Chugani of Bernstein, predicting Bitcoin will rise to $150,000 in 2026.
While headlines scream about outflows from spot Bitcoin ETFs, the real numbers suggest otherwise. Since their launch in 2024, the funds have attracted tens of billions, with recent outflows amounting to only about 6% of the total.
Bulls point to several factors that could lead to a sharp rebound. Public companies and ETFs control nearly 12% of all Bitcoin. These are "strong hands" that are not inclined to sell on declines.
Furthermore, the infrastructure is ready. Once sentiment shifts, banks and brokers will be able to provide instant access to purchases for millions of clients, something that was not the case in previous cycles.
The market is depressed: nearly 45% of cryptocurrency holders are currently losing money. However, the infrastructure that collapsed last time is not only intact but is now growing. Investors are betting that this foundation will outweigh the current charts.