In the wake of recent volatility in the cryptocurrency market, institutional investors continue to hold strong views on Bitcoin as a reliable store of value, according to John D’Agostino, Coinbase’s Head of Institutional Strategy. Speaking with CNBC, D’Agostino revealed insights from a recent survey he conducted, which included 130 institutional investors from Hong Kong and the United Arab Emirates. The findings indicated that these investors remain steadfast in their belief regarding Bitcoin, even as its price has dipped significantly.
When asked about the impact of price fluctuations on their investment strategies, not one of the participants indicated that their thesis had shifted. D’Agostino highlighted that many of these investors are leveraging natural resources—fossil fuel sales in the Middle East and trade surpluses in China—to accumulate Bitcoin as part of their investment strategy.
D’Agostino pointed out that this group of institutional investors is not merely waiting for opportunities to buy at lower prices, but rather has been making consistent investments over the past five to seven years. He stated that on the Coinbase platform, “net buying exceeds net selling,” reflecting a positive outlook from these institutional players.
As Bitcoin’s price fell to around $66,500—down nearly 24% for the year and almost 50% from its all-time high of $126,000 in October—D’Agostino urged spectators to consider the broader context. He compared Bitcoin’s historical performance favorably to traditional investments, noting that while the S&P 500 and gold have offered returns of about two and three times, respectively, Bitcoin has seen returns between 11,000 and 15,000 times if held over a decade.
He also reflected on Bitcoin’s significant decline in 2022, when it dropped to as low as $15,000 amid the collapses of major platforms like Terra and FTX. However, he expressed confidence that the asset is unlikely to revisit such lows this time around, citing the current market’s reduced volatility and a more favorable regulatory environment in the U.S.
In a wider context, the conversation highlighted the increasing importance of diversified investment strategies among individuals and institutions alike. Investors are looking beyond cryptocurrencies to include various asset classes—such as real estate, precious metals, and alternative investments—as a means of capturing steady returns and managing risk.
This sentiment resonates across various platforms, including those enabling investments in real estate, AI technologies, and fractional ownership of high-value art. Financial platforms are increasingly providing tools that help investors navigate the complex landscape of modern investment opportunities.
As the crypto market continues to evolve, the resilience shown by institutional investors indicates a long-term belief in Bitcoin’s potential as an enduring asset class.
