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Bitcoin slide below $70,000 draws mixed reactions
Bitcoin's retreat under the $70,000 mark is being interpreted differently by legacy holders and large institutions, according to Bitwise CEO Hunter Horsley. While long-term holders appear cautious, institutional desks are treating the drawdown as a fresh opportunity to build positions in BTC and other crypto assets.
Institutional demand steps in as prices dip
Horsley told CNBC that many institutional investors are seeing "prices they thought they'd forever missed," creating renewed buying interest. Bitwise, which manages more than $15 billion in institutional assets, recorded sizable inflows last week — including more than $100 million on one trading day when Bitcoin hovered near $77,000.
Despite a broader market pullback, inflows into spot products show institutions are actively reallocating into Bitcoin. For example, BlackRock's spot Bitcoin ETF recorded $231.6 million in inflows on Friday following earlier outflows during the volatile week. These flows underscore the growing influence of fiat and institutional capital on Bitcoin liquidity and price discovery.
Macro volatility drags crypto into a broader sell-off
Horsley also highlighted that Bitcoin is currently moving in line with other liquid macro assets as investors "sell everything that is liquid." Over the past 30 days BTC has fallen roughly 22.6%, trading around $69,635 at the time of reporting. That correlation reflects heightened risk-off sentiment across equities, commodities and crypto during periods of macro stress.
Hunter Horsley spoke to CNBC on Friday.
Commodities have not been immune: gold is down about 11.43% from its peak of $5,609 (trading near $4,968), while silver has plunged roughly 35.95% from its record $121.67 high to trade around $77.98. These moves show liquidity pressure is affecting multiple asset classes simultaneously.
Retail curiosity rises alongside institutional interest
Retail attention to Bitcoin has also spiked. Google Trends registered a worldwide search score of 100 for "Bitcoin" the week starting Feb. 1, coinciding with a dip to $60,000 — a level not seen since October 2024. That surge in search activity suggests retail investors remain engaged even as volatility increases.
Horsley framed the market as one with active buyers and sellers: "There's a lot of volume, and there are sellers and buyers." He emphasized that although Bitcoin is experiencing a bear phase, sustained institutional inflows and growing ETF participation could support longer-term price formation as liquidity conditions stabilize.
What this means for traders and investors
Short-term traders should expect continued volatility as market participants rebalance portfolios and react to macro signals. For longer-term crypto investors and institutions, dips under $70K can represent an entry point to accumulate BTC exposure — particularly via regulated products like spot Bitcoin ETFs that simplify custody and compliance. Monitoring on-chain metrics, ETF flows, and macro liquidity indicators will be critical for navigating the current environment.
Source: cointelegraph
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