Institutional Investors Could Trigger Next Bitcoin Bear Market, Analyst Warns

Summary: As institutional adoption of Bitcoin deepens, some market experts are questioning the long-held cycle theory, warning that corporate investors may accelerate the arrival of the next bear market.

Background: Bitcoin Cycle Theory in Question

Bitcoin’s well-known market cycle, characterized by alternating bull and bear phases, is facing renewed scrutiny. Recent discourse within the crypto community suggests that the traditional BTC cycle theory is becoming obsolete. Analysts attribute this shift to the growing influence of institutional investors entering the market via Bitcoin exchange-traded funds (ETFs).

According to critics, the new wave of corporate involvement is reshaping Bitcoin’s market dynamics — and not necessarily for the better. Where early investors weathered downturns with long-term conviction, some suggest newcomers may not be as resilient under pressure.

Analyst: Institutional Players Could Spark Next Bear Cycle

Crypto analyst Burak Tamac took to social platform X to highlight how institutional investors could lead Bitcoin into its next downturn. He cited comments from Strategy Chairman Michael Saylor, who recently told finance expert Lyn Alden that his firm is well-positioned to weather a potential 80% correction.

“I think our structure is smooth and we wouldn’t miss a single dividend payment on an 80% drawdown,” Saylor said during a livestream. “On a 90–95% drawdown, in theory, you might suspend something for a little bit of time but you’d eventually get back current on it.”

However, Tamac contrasts Strategy’s endurance with the vulnerability of newer corporate entrants, many of whom purchased BTC at higher prices closer to market peaks. These institutional investors, lacking experience and holding higher-cost positions, may be more inclined to sell under pressure, potentially exacerbating a price decline.

“Unlike Strategy, which entered the market before the 2020 bull run and survived 2022’s crash, these newer players are more likely to capitulate if Bitcoin prices fall sharply,” Tamac noted. His analysis suggests that while institutional involvement adds legitimacy, it also introduces volatility risks if prices trend downward.

Bitcoin Price Update

At the time of writing, Bitcoin is trading around $112,860, showing little movement over the past 24 hours. According to data from CoinGecko, BTC has declined by over 4% in the past week, signaling increased price pressure amid market uncertainty.