In April 2025, amid declines in cryptocurrency and stock markets, the level of demand for Bitcoin among institutional investors, including sovereign funds, remained high. This was reported in a comment to CNBC by John D’Agostino, head of strategy at Coinbase Institutional.
This is reported by Business • Media
Institutional Activity During Market Fluctuations
The expert noted that during market upheavals, large institutional players continued to accumulate the first cryptocurrency, viewing it as a reliable means of hedging risks. While retail investors were reducing their positions, there was a net outflow of capital from Bitcoin-related exchange-traded funds.
Reasons for the Increase in Bitcoin Demand
“Bitcoin trades on its technical characteristics, which are similar to gold. It has a limited supply, immutability, and sovereign mobility,” D’Agostino stated.
According to the expert, it is the high demand from institutional investors that has caused the recent significant jump in Bitcoin’s price, which reached $94,000.
D’Agostino identified three main reasons for the growing interest in the first cryptocurrency among such entities:
- devaluation of the dollar;
- divergence from technologies and large tech companies;
- basket hedge theory.
The expert also discussed preparations for potential economic crises, noting that Bitcoin is on the short list of assets that can be used as a hedge in the event of dollar devaluation, market panic, or instability.
Furthermore, he compared the ease of transporting Bitcoin to gold, emphasizing that transferring even significant amounts in cryptocurrency is much more convenient and secure than in bullion.
It was previously reported that the financial holding Cantor Fitzgerald is preparing to launch a $3 billion Bitcoin project with the support of SoftBank and Tether, indicating the increasing interest of institutional players in cryptocurrency.