- Institutional buyers are turning to Bitcoin amid concerns over dollar stability and global trade slowdown.
- Long-duration capital allocators see Bitcoin as a strategic alternative to traditional reserve assets.
- Despite ETF outflows, direct Bitcoin purchases from sovereign investors supported a 13% monthly price gain.
In a recent appearance on CNBC’s Squawk Box, John D’Agostino, Head of Strategy at Coinbase Institutional, revealed a significant shift in institutional behavior toward Bitcoin. According to D’Agostino, financial institutions have ceased selling Bitcoin and are actively accumulating it instead a trend that marks a stark contrast to sentiment just a few years ago.
During a CNBC Squawk Box segment D’Agostino observed that Bitcoin surpassed $94,000 due to increasing institutional investment. Investors who hold Bitcoin for long-term periods based on monetary events and geopolitical factors contributed to the latest capital inflows according to him.
Impact of De-Dollarization on Bitcoin Allocation
The rise of institutional Bitcoin adoption can mainly be attributed to the trend of governments moving away from dollar-based systems. The new U.S. tariff announcement on April 2 triggered a substantial discussion about the American dollar retaining its dominance in global trading relationships according to D’Agostino.
Several government funds are now shifting away from dollar-based assets because they choose to put their funds into Bitcoin. He stated that this strategy represents sovereign investors’ broader strategy to decrease their financial exposure to changing trade routes and dollar depreciation.
Bitcoin as a Strategic Reserve Asset
The status of Bitcoin as a reserve asset has led institutions to increase their interest. The financial sector recognizes Bitcoin along with gold because it serves as a successful inflation-hedging mechanism according to D’Agostino.
The cryptocurrency achieves its investibility through its immovable supply combined with decentralized operation which drives investor interest. The distinctive traits that define Bitcoin offer investors an opportunity to use it as a defense against extended economic fluctuations in their diversified portfolios.
ETF Outflows vs. Institutional Accumulation
Despite ongoing outflows from Bitcoin-related ETFs throughout much of April, Coinbase observed persistent net buying among institutional investors. D’Agostino clarified that these ETF movements do not fully reflect institutional behavior, particularly among sovereign entities that avoid disclosing asset positions.
Retail investors, he said, were net sellers during this period, yet Bitcoin managed a 13% monthly gain. This divergence indicates that strategic buying from long-duration capital played a substantial role in supporting the asset’s price strength.
Institutional Confidence and Market Outlook
According to D’Agostino institutional capital is showing dedicated long-term support for Bitcoin because sovereign wealth funds and other conservative investors have demonstrated increasing belief in its sustained worth.
Institutional investors have continued their momentum from April to allocate digital assets to their portfolios but specific allocation details remain undisclosed. The performance of Bitcoin remains set to be influenced by this arising trend in its intersection with emerging financial techniques worldwide.
