Bitcoin Drops Below $75,000 Amid Volatility, Institutions Continue Buying
1min read Bitcoin's resilience was put to the test as volatility persisted over the weekend, with the asset's price dropping below $75,000. This followed a period of stability where several industry watchers noted BTC's resilience compared to US equities, despite the market turmoil caused by Trump's tariff reveal.
Tony Greer, a guest on the Forward Guidance podcast, described corporate bitcoin buying at every price level as "astounding" and highlighted institutions' ongoing willingness to buy the dip, indicating a long-term belief in the asset. Strategy, a company that paused its BTC buying last week, had previously bought 22,048 BTC at an average price of approximately $87,000 per coin. gamestop also recently closed a $1.3 billion private offering of convertible senior notes, with a portion of the net proceeds potentially going toward buying bitcoin.
Despite the net outflows from US spot bitcoin ETFs, which have stayed rather modest since peaking at $1.1 billion on Feb. 25, with roughly $165 million leaving those products last week, the broader risk meltdown could eventually lead to a significant market correction.
Ask Aime: How will the recent volatility in Bitcoin's price affect its long-term value?
David Hernandez, a crypto investment specialist, noted that BTC's behavior over the last several days reflects its developing investment thesis as a store of value asset, providing uncorrelated sources of return during moments of macroeconomic uncertainty. He added that bitcoin cannot be tariffed, offering a potential flight to safety as other assets buckle.
Joel Kruger from LMAX Group argued that the current price levels present a compelling accumulation opportunity, regardless of the underlying fundamentals. He noted two "resistance-turned-support" levels: the S&P’s 2022 high around 4,800, as well as the $74,000 mark for BTC. These levels should strongly appeal to both US equity and bitcoin investors.
Hernandez views $72,000 as a key support level to watch, with expected Fed rate cuts serving as a tailwind for risk assets. Sidelined capital could return to equities, credit, and crypto as borrowing costs fall, potentially helping BTC see moderate single-digit percentage bumps and return to six figures later this year.
Longer term, a global trade war could spur countries fighting for currency dominance to gravitate toward BTC, given its neutrality and global liquidity. This could further solidify BTC's position as a store of value asset and a potential flight to safety during times of economic uncertainty.
