Why are institutions buying bitcoin like crazy after the sharp drop?

Although the recent sharp drop in bitcoin has caused panic in the market, institutional investors are frantically increasing their positions at low levels. The logic behind this is intriguing.

The amount of bitcoin held in the United States exceeds that held overseas, reaching a record high

• US entities hold more than 65% of bitcoin held overseas, reaching a historical peak, showing the extremely high demand for bitcoin in the US market.

• This data reflects the trend of Bitcoin's "national assetization", and Trump's proposed national Bitcoin reserve plan is undoubtedly a driving force.

Trump effect: policies drive prices up

• Trump clearly supports Bitcoin reserves, driving the market's optimistic expectations for cryptocurrency policies.

• His policy proposals directly pushed Bitcoin to a new high of $108,000, further strengthening institutional investment confidence.

Institutional entry: a force that cannot be ignored

1. MicroStrategy continues to buy

• It already holds 447,000 bitcoins and now plans to invest $42 billion to increase its holdings. This firm layout highlights the long-term bullish attitude of institutions.

2. Small and medium-sized enterprises are also getting on board

• For example, Thumzup, an unknown small company, recently purchased $1 million worth of Bitcoin.

• This shows that the investment logic of Bitcoin has penetrated into enterprises at all levels, and even small companies are unwilling to miss the opportunity.

Polarization of market sentiment

• Retail investors panic-sell due to the sharp drop, while institutions take the opportunity to buy, forming a typical situation of "retail investors sell at the bottom and institutions eat up".

• In the long run, continued institutional buying may become an important support for price rebound.

Summary

Although Bitcoin's short-term volatility has intensified, the crazy buying of institutions shows their high recognition of Bitcoin's long-term value. With favorable policies and in-depth institutional layout, the current market adjustment may be a rare opportunity for ordinary investors to layout. Low-level layout and long-term holding may become the key strategy to outperform the market in the future.