Coinbase strategist reports major buyers view correction as opportunity, not risk
Major institutional investors are stepping up Bitcoin purchases as prices have fallen from $100,000 and $125,000 levels to around $60,000, according to John D’Agostino, Head of Institutional Strategy at Coinbase.
D’Agostino made the comments during a CNBC interview with host Joe Kernen, stating that institutions view the recent pullback as a buying opportunity rather than a signal to reduce exposure. “I think both retail and institutional are signaling this is a long-term asset you want to hold,” D’Agostino said.
Bitcoin dropped to around $59,500 after trading above $70,000 just days earlier, before recovering above $63,000. At the time of the CNBC interview, Bitcoin was trading at $63,841, up 3.4% over the prior 24 hours.
D’Agostino stated he is unaware of any major institutional investor facing dangerous leverage levels or imminent liquidation risk. Many large holders are reportedly looking to raise additional capital and expand Bitcoin positions rather than cutting exposure. Family offices, sovereign wealth funds, and government investment entities in the Middle East are viewing the recent correction as a buying opportunity, according to D’Agostino.
Retail participation in spot Bitcoin ETFs has dipped only slightly despite the steep decline, with approximately $100 billion in exposure held through these vehicles. D’Agostino noted that institutions have spent years studying Bitcoin and tend to grow more interested as prices fall.
Joe Kernen cited several factors potentially contributing to the pullback: a risk-off environment, capital rotation, elevated interest rates, and slower-than-expected regulatory clarity progress. Geopolitical headwinds include tensions involving Iran and uncertainty surrounding the Strait of Hormuz.
D’Agostino argued that price swings are normal for an asset class behaving like a commodity. He stated Bitcoin’s long-term investment case remains intact despite geopolitical pressures and noted that improved market infrastructure and an evolving regulatory framework make the current environment stronger than previous downturns.
