Institutional Traders Dominate Bitcoin Price Discovery

Institutional traders have increased their presence in Bitcoin price discovery, with Wintermute reporting that institutional clients accounted for 72% of trading volume on its over-the-counter trading desk in the first half of 2026.

This represents a significant jump from 59% in the same period last year, as hedge funds, asset managers, private wealth companies, and corporate treasuries have increasingly filled up the market. Retail participants, who had been present during previous downturns, have moved back towards equities.

The dominance of institutional traders has led to a decrease in Bitcoin's realized volatility, from 70% in previous cycles to around 45% this cycle. This could be attributed to larger players being more cautious and professional traders utilizing derivatives.