Bitcoin Price Swings Moderated by Institutional Adoption
The recent Bitcoin downturn shows a less severe pattern than in previous market cycles. This change can be attributed to the growing influence of institutional investors, such as professional money managers and those accessing the asset through ETFs.
The most recent bear cycle saw a 55% decline from Bitcoin's October 2025 peak, which is milder compared to prior drawdowns exceeding 80%. The launch of U.S. spot bitcoin ETFs in January 2024 has increased professional investor access, contributing to smaller price swings and less severe selloffs.
As noted by Ryan Rasmussen, Bitwise director and head of research, the products give financial advisers and other professional investors a familiar route to add Bitcoin to traditional portfolios. This has brought in holders who may be more willing to tolerate volatility when their overall exposure remains limited.