Institutions Are ‘Buying the Dip’ as Crypto Finds a Footing Following Recent Market Slump

Institutions are taking advantage of the recent market slump in crypto to “buy the dip,” according to FalconX, a crypto trading and institutional brokerage firm. After the market lost $230 billion and major asset prices hit new lows, interest in Bitcoin remains high and is trading nearly three times more than Ethereum. FalconX noted that all types of investors, including proprietary trading desks, hedge funds, venture funds, and retail aggregators, were net buyers during this period. The sell-off occurred alongside a broader market sell-off in stocks, driven by disappointing U.S. jobs data and reduced manufacturing activity, raising concerns of a recession. However, crypto has since rebounded, with Bitcoin recovering 13% of its losses. FalconX’s head of research, David Lawant, believes that institutional investors view the dip as an opportunity to increase their holdings, as they remain optimistic about the long-term prospects of the asset class.