Institutions Buy the Dip Amid October Crypto Market Shake

Round two-thirds of institutional buyers have a optimistic outlook for Bitcoin going into 2026, in response to Coinbase. 

“Most respondents are bullish on Bitcoin,” David Duong, head of analysis at Coinbase Institutional, wrote in a analysis report titled “Navigating Uncertainty.”

Coinbase carried out an institutional investor survey with 124 respondents, discovering that 67% of institutional buyers had a optimistic outlook for Bitcoin (BTC) over the subsequent three to 6 months. 

It added that there was a “significant divergence” of opinion relating to the place we’re in the market cycle, with 45% of establishments believing markets are in the late levels of the bull run, in comparison with simply 27% of non-institutions. 

Crypto treasuries are shopping for the dip

“Taking a look at the provide/demand image, it’s arduous to overstate the affect that digital asset treasury firms have had on markets this yr,” wrote Duong.

Tom Lee-chaired BitMine has been amongst the firms buying the dip, scooping up greater than 379,000 Ether (ETH) price virtually $1.5 billion since the market crash that pushed Ether costs again under $4,000. 

In the meantime, Michael Saylor hinted on Sunday that Technique could purchase extra Bitcoin after sharing a chart exhibiting $69 billion in BTC holdings. Even with fairness pullbacks, DAT crypto reserves stay intact, signaling long-term conviction.

Bull market has room to run

Coinbase’s Duong mentioned the crypto bull market “has room to run,” however is extra cautious after the events of Oct. 10.

“We nonetheless see resilient liquidity situations, a robust macro backdrop, and supportive regulatory dynamics.”

Associated: Crypto crash unlikely to have derailed ‘Uptober,’ analysts say

Coinbase additionally highlighted macro and liquidity tailwinds, together with two extra anticipated Federal Reserve fee cuts and huge money-market funds sitting on the sidelines, that might drive markets in This fall. 

“Extra fee cuts from the Fed, in addition to larger fiscal and financial stimulus in China, might incentivize extra buyers to come back off the sidelines.”

Favorable setup for Bitcoin

The present setup appears to be like significantly favorable for Bitcoin, the agency acknowledged, nevertheless it had a extra cautious strategy for positioning in altcoins.

Crypto markets have remained regular over the weekend, with Bitcoin topping $109,000 after reclaiming the support-turned-resistance stage at $108,000 and Ether climbing above $4,000 briefly, however there have been no main makes an attempt at restoration but as sentiment stays cautious.

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