Bitcoin's Institutional Buying Spree: A Correction Risk?

Wednesday Nov 12 2025 19:10

Duration

2 min

  1. 1. Bitcoin's Institutional Buying: A Double-Edged Sword?

  2. 1.1 Signs of Fatigue in the Bitcoin Market

  3. 1.2 Spot Bitcoin ETFs as a Key Driver

  4. 1.3 The Risk of Portfolio Rebalancing

  5. 1.4 Outflows from Bitcoin ETFs

  6. 1.5 Bitcoin's Underperformance in 2025

  7. 1.6 Focus on Ether as a Hedge

  8. 1.7 Profit-Taking by Whales

Bitcoin's Institutional Buying: A Double-Edged Sword?

Markus Thielen, CEO of 10x Research and a former portfolio manager, suggests that the surge of institutional buying that has driven Bitcoin's price upwards since early 2024 could also exacerbate a correction if market sentiment weakens.

Signs of Fatigue in the Bitcoin Market

In a Bloomberg interview, Thielen pointed out that the crypto market, particularly Bitcoin (BTC), is exhibiting signs of fatigue following a challenging October marked by the industry's largest liquidation event. These losses, he added, have compounded underlying macroeconomic risks that Bitcoin increasingly mirrors.

Spot Bitcoin ETFs as a Key Driver

Given that institutional inflows, especially from spot Bitcoin exchange-traded funds (ETFs), have been a crucial factor in the 2024 rally, Thielen cautioned that the same investor base could accelerate downward pressure if activity slows.

The Risk of Portfolio Rebalancing

"At some point, the risk manager may step in and say, 'you need to eliminate or lighten your position'," Thielen explained. "There's a risk that Bitcoin is going to continue to underperform because people need to rebalance their portfolios."

Outflows from Bitcoin ETFs

These comments come as US spot Bitcoin ETFs have experienced increasing outflows. Funds collectively recorded $939 million in withdrawals last week, according to data from CoinShares, reflecting a decline in appetite among institutional investors.

Bitcoin's Underperformance in 2025

Surprisingly, Bitcoin has underperformed most major asset classes this year – an unusual trend in the year following its most recent halving. The leading cryptocurrency has trailed behind gold, technology stocks, and even several Asian equity indexes since January, despite reaching multiple record highs, including a peak above $126,000 in early October.

Focus on Ether as a Hedge

However, Thielen's 10x Research isn't entirely bearish on Bitcoin. As Cointelegraph previously reported, the firm considers shorting Ether (ETH) to be a more effective hedge than betting against Bitcoin, which remains the preferred asset for institutional investors seeking exposure to cryptocurrency.

Profit-Taking by Whales

Much of Bitcoin's recent weakness has been attributed to whales – large holders of the cryptocurrency – taking profits above the $100,000 level. Citigroup's Alex Saunders told Bloomberg that the number of wallets holding more than 1,000 BTC has been gradually decreasing in recent weeks.

Risk Warning: This article is provided for informational purposes only and does not constitute investment advice, investment research, or a recommendation to trade. The views expressed are those of the author and do not necessarily reflect the position of Markets.com. When considering shares, indices, forex (foreign exchange), and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and may not be suitable for all investors. Leveraged products can result in capital loss. Past performance is not indicative of future results. Before trading, ensure you fully understand the risks involved and consider your investment objectives and level of experience. Cryptocurrency CFD trading restrictions may apply depending on jurisdiction.

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Written by:

Ava Grace

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