FalconX reports a clear trend of institutional investors buying the dip in cryptocurrency following a market downturn that wiped out approximately $230 billion. Interest in Bitcoin remains high, with institutions purchasing nearly three times more Bitcoin than Ethereum.
David Lawant, head of research at FalconX, noted that various investor types—including proprietary trading desks (57% of buy-side flows), hedge funds (63%), venture funds (61%), and retail aggregators (72%)—have acted as net buyers during this correction. The sell-off, triggered by broader market declines due to disappointing U.S. jobs data, led many crypto investors to liquidate positions.
Despite this, Bitcoin has rebounded about 13% from its lows to approximately $56,400. Lawant emphasized that institutional investors see the current dip as an opportunity to strengthen their positions, maintaining a positive long-term outlook for the cryptocurrency market.
The trend of institutions buying the dip indicates renewed confidence in cryptocurrencies, particularly Bitcoin, as they leverage lower prices to enhance their market presence.
