INSIGHT: Institutions Are Accumulating Bitcoin During Market Dips
Recent speculation suggested that hedge funds connected to BlackRock were behind Bitcoin’s latest pullback. However, that narrative appears to be inaccurate.
According to Robert Mitchnick, institutional investors have been buying Bitcoin during price declines, not exiting positions. He also dismissed claims that hedge funds linked to iShares Bitcoin Trust (IBIT) triggered the recent sell-off.
Market data suggests the correction was largely driven by leveraged derivatives liquidations, rather than significant ETF outflows. In simple terms, short-term traders faced pressure, while long-term institutional capital remained steady.
This highlights an important distinction in today’s market structure:
Volatility in derivatives does not necessarily reflect institutional sentiment in spot markets.
A reminder that not every dip is driven by institutional selling sometimes, it’s leverage being flushed out.
