Institutions Ditch Standalone BTC Bets Amid Crypto Liquidity Strain

According to Gracy Chen of Bitget, institutions in the crypto market are facing liquidity strain after last year's 10.10 shock left them with a 30-40% lower liquidity across major venues.

This has resulted in increased volatility and trust costs for these institutions, which have traditionally been viewed as liquidity anchors in the crypto market.

Chen notes that instead of making standalone bets on Bitcoin (BTC), institutions are shifting towards multi-asset BTC strategies and safer custody options to manage their exposure to the cryptocurrency.