Institutions Dominate as Retail Investors Flee Bitcoin Bear Market
The Bitcoin bear market has seen a significant shift in investor dynamics, with hedge funds and asset managers becoming the dominant force in Bitcoin trading.
According to data from Wintermute's OTC desk, these institutional investors accounted for a record 72% of spot trading volume in the first half of 2026, up from 61% in prior periods.
In contrast, retail investors, who have historically been known for buying during downturns, are now distributing their Bitcoin at an aggressive clip, with on-chain data from Glassnode showing a cratered Accumulation Trend Score of 0.11 and 0.05 as of March 2026.
The institutional side, however, looks more resilient, with Bitcoin ETFs absorbing roughly $60 billion in net inflows through October 2025, despite the price drop to below $67,000.
Matt Hougan, CIO at Bitwise, attributed this phenomenon to Bitcoin's unique status as a 'non-consensus asset', which leads professional investors to demonstrate 'diamond hands' during downturns.