Institutions Refused to Sell Crypto During 50% Crash, Bitwise Report Finds

What happened

A Bitwise report found that none of 15 institutions cut their crypto exposure during a roughly 50% market drawdown. Bitcoin was the only crypto asset held by every institution, and most allocations were 1% to 2% of investable assets.

Confirmed

Global impact / market context

Institutions holding crypto through a 50% price drop suggests they treat it as a long-term allocation rather than a short-term trade. If this behavior continues, it could mean steadier demand and less panic selling during future crashes.

Analyst inference

Most institutional crypto allocations were only 1% to 2% of investable assets, a small slice of their total portfolios. That small size may explain why a 50% crypto drawdown did not force these institutions to sell.

Analyst inference

What to watch

1. Bitwise reported that Bitcoin was the only crypto asset held by every institution in its survey of 15 institutions. Confirmed
2. Watch whether future Bitwise reports show institutions still refusing to sell crypto during the next large market drawdown. Proposed
3. Watch whether institutional crypto allocations stay near 1% to 2% of investable assets, which would signal limited portfolio risk from crypto. Analyst inference

Affected assets

• BTC — Bitcoin

Evidence

• livebitcoinnews.com