Institutions Take the Reins in Bitcoin Trading Amid Bear Market
The Bitcoin bear market has seen a significant shift in trading dynamics, with hedge funds and asset managers becoming the dominant force. According to Wintermute's OTC desk data, these institutions accounted for 72% of spot trading volume in the first half of 2026, up from 61% in prior periods.
Retail investors, who historically bought the dip, are now heading for the exits. On-chain data from Glassnode shows that small holders with under 10 BTC have been aggressively selling their Bitcoin, with a Accumulation Trend Score of 0.11 and 0.05 as of March 2026.
Bitcoin ETFs, which launched in January 2024, have absorbed $60 billion in net inflows through October 2025. Even as the price dropped approximately 50% from its highs and slid below $67,000, total net outflows from these ETFs were less than $10 billion as of March 2026.
Matt Hougan, CIO at Bitwise, attributes this behavior to Bitcoin's status as a 'non-consensus asset', which requires deliberate and high-conviction positioning. JPMorgan's analysts forecast that crypto inflows in 2026 will transition meaningfully toward institutional investors.