Long Term Outlook of the Bitcoin Market: Expansion of Liquidity Due to Institutional Investor Entry

Source: Bittimes Original Title: “The Decline in Bitcoin Prices Loses Meaning” Bitwise CEO Shows Liquidity Expansion and Long-Term Outlook Original Link: https://bittimes.net/news/213617.html

Bitwise CEO Shows New Stage of Bitcoin Market

Hunter Horsley, CEO of asset management firm Bitwise, expressed the view that the recent decline in Bitcoin's price is becoming less significant in terms of its long-term market value.

Growth potential seen from market size

As a basis for this, Mr. Horsley points out that Bitcoin's market capitalization is approximately $1.9 trillion, which is still small, and its share of the overall market is low, so the impact of short-term price declines on long-term value is limited.

The individual stated that it “doesn't make much difference” whether the Bitcoin price fluctuates between $85,000 and $95,000, or even $105,000, and expressed the recognition that there is “still a long way to go” for the Bitcoin market.

Mr. Horsley estimated the global stock market at about $120 trillion, the bond market at about $140 trillion, real estate at about $250 trillion, the money supply at about $100 trillion, and the gold market at about $30 trillion, emphasizing that Bitcoin's approximately $1.9 trillion is “insignificant” compared to these.

The door for new entrants is opening.

“The door to new entrants in the Bitcoin market is opening, and it has reached a stage where hundreds of trillions of dollars in wealth that could not previously enter is now able to flow in for the first time,” he emphasized.

Touching on the expansion of Bitcoin's liquidity and its long-term growth potential, Mr. Horsley stated, “Don't lose sight of the forest for the trees,” emphasizing the importance of a perspective that is not caught up in short-term price movements.

democratization of the market by institutional capital

The introduction of a Bitcoin spot ETF is expected to lower the entry barriers for large investors such as pension funds, insurance companies, and government-related funds, making it easier for capital inflows into the market.

Traditionally, huge pools of capital that could not invest in Bitcoin due to regulatory, custody, and investment policy constraints are now accessible through brokerage accounts and pension plans thanks to the introduction of physical ETFs.

As a result, institutional investors with vast operational assets can allocate even a small portion of their portfolios to Bitcoin, potentially contributing to market liquidity and the expansion of adoption.

Specific movements by institutional investors

Against the backdrop of these institutional changes, specific examples of the movements of institutional investors are beginning to emerge.

Mr. Horsley revealed that a major U.S. bank with assets under management of $1 trillion has sought advisory explanations regarding Bitcoin investments, and stated that major universities and government funds are also beginning to increase their investment ratios through regulated Bitcoin investment products.

In fact, it has been reported that Harvard University's endowment has expanded its holdings in Bitcoin ETFs, with a holding ratio increasing by 257%. Additionally, the UAE's sovereign fund “Al Warda” is expected to increase its Bitcoin ETF holdings by 230% after June 2025, reaching a valuation of $517 million.

An ecosystem that advances even amidst market turmoil

In mid-November 2025, the BTC price temporarily fell below $100,000, reaching its lowest level in about six months. The “Fear and Greed Index,” which indicates investor sentiment, has also dropped to around 15 (extreme fear), and the movement to avoid risk assets due to the sell-off of U.S. tech stocks is exerting downward pressure.

However, despite the short-term market anxieties, there are positive movements in the Bitcoin-related ecosystem. In September, the SEC (U.S. Securities and Exchange Commission) approved comprehensive new standards regarding the listing of cryptocurrency spot ETFs, and the integration of digital assets, including Bitcoin, into the traditional financial system is steadily progressing.

In fact, in November, the first XRP spot ETF was listed on the Nasdaq market in the United States, and the trading volume on the first day exceeded that of the Solana ETF, indicating that institutional investors' interest is expanding to tokens other than Bitcoin.

Conclusion

The Bitcoin market remains highly volatile; however, as Mr. Horsley points out, it seems important to take a long-term view to assess future trends. Even if influenced by short-term declines, the perspective that Bitcoin's value proposition remains strong is expected to be further reinforced by the expansion of institutional investors' participation.