Following the recent pullback in Bitcoin's price, the question of whether long-term demand for the currency has weakened has once again come into focus. CNBC, citing CoinDesk and research firm VettaFi, reports that despite the significant price decline from last year's highs, institutions and advisors have not entirely exited the market, with some funds still waiting for new investment opportunities.
Bitcoin has fallen by nearly half from its high.
The report noted that Bitcoin briefly climbed back above $65,000 at the beginning of the week, but fell back to the $63,000 range by Thursday. Looking at the week's performance, Bitcoin's cumulative decline was close to 2% due to the shortened trading week caused by the holiday.
Compared to its all-time high of $126,279 reached on October 6, 2025, Bitcoin has fallen by nearly 50% as of Thursday's close. Against this backdrop, discussions have resurfaced about whether a "crypto winter" will repeat itself.
CoinDesk executives say the market still recognizes its long-term value.
David LaValle, President of Indices and Data at CoinDesk, stated on CNBC that Bitcoin's long-term prospects should not be dismissed due to temporary fluctuations. He compared Bitcoin to the early stages of smartphone adoption, arguing that such technologies often experience inconvenience and controversy in their early development, but this does not prevent them from gradually entering mainstream use cases.
He also stated that while the digital asset market has experienced several downturns over the past eight years, the current correction is different. According to him, the market is now focusing more on "when to re-enter" rather than "whether this asset has a future." He believes this indicates a stronger understanding of Bitcoin among investors.
No large-scale withdrawal of ETF holders has been observed.
Todd Rosenbluth, Head of Research and Editorial at VettaFi, focused on the behavior of Bitcoin ETF investors. He stated that given the ongoing market uncertainty, most ETF holders are continuing to hold their positions, reflecting that some investors remain confident in future market trends.
According to a VettaFi survey of 104 financial advisors conducted in early May, nearly half of the respondents said they were still on the sidelines, while 22% said they were investing or continuing to build positions in digital assets. The survey results indicate that the advisor community has not reached a consensus, but rather is taking a more divergent approach.
- Nearly half of the consultants surveyed are still taking a wait-and-see approach.
- 22% indicated they are currently investing or continuing to build positions.
- Market corrections present opportunities for reallocation of some funds.
Rosenbluth believes that price pullbacks affect market participants differently. Some investors will see the decline as a buying opportunity, while others will continue to avoid the market due to excessive volatility. However, based on evolving demand, he expects market interest in digital assets to continue to grow.
