Bitcoin is currently experiencing a bear market, with prices plummeting 47% from its all-time high of nearly $126,000 achieved in October 2025. Despite this downturn, John D’Agostino, the head of institutional strategy at Coinbase Global, has revealed that sophisticated buyers are still looking to accumulate Bitcoin. In fact, many of the conservative investors typically expected to shy away from such volatility are buying in aggressively.
Recent buying activity has been particularly pronounced among family offices in the United Arab Emirates (UAE) and sovereign wealth funds. Notably, Abu Dhabi’s Mubadala Investment Company, a sovereign wealth fund with assets totaling $330 billion, has been steadily increasing its Bitcoin holdings. As of the end of March, it held $566 million in BlackRock’s iShares Bitcoin Trust, marking a 16% increase from the previous quarter and continuing a trend of accumulation for the fourth consecutive quarter.
Moreover, U.S. spot Bitcoin exchange-traded funds (ETFs) maintain approximately $100 billion in exposure, indicating that the inflows remain relatively stable despite market fluctuations. For example, there was a notable day on June 2 when $519 million in net outflows occurred, yet the overall interest in holding Bitcoin through these vehicles appears to be resilient.
The buying behavior of these institutional players can be understood in the context of their long-term investment strategies. Sovereign funds and family offices generally have time horizons extending over decades, making Bitcoin an attractive asset due to its fixed maximum supply of 21 million BTC and the diminishing issuance rate through mining. This characteristic aligns with their goal of identifying long-lived investments.
As supply becomes increasingly constrained, the price of Bitcoin is likely to be biased upward over time. Institutional investors see an opportunity to buy during market pullbacks, taking advantage of lower prices to position themselves favorably for future growth.
Potential investors should evaluate whether their investment time horizons align with those of these institutional buyers. If a prospective investor cannot hold Bitcoin for at least five years, the inherent volatility could erode the value of their investment when they are ready to cash out. Conversely, those with a longer view can benefit from the sustained buying pressure created by institutional demand.
For those contemplating entering the Bitcoin market, it is advisable to weigh this investment against other opportunities. Recent analyses have pointed out that some investment options, such as selected individual stocks, might offer significant returns. Historical performance of stocks recommended by investment firms indicates that they often outperform Bitcoin, making it essential for investors to consider diverse options for their portfolios.
