Bitcoin News Update: Bitcoin's Recent Decline: Can Institutional Investors Help Steady the Market or Intensify the Slump?

The recent downturn in Bitcoin's price has sparked renewed discussions about the forces shaping the market. Economist Peter Schiff has cautioned that as long-term "OG" holders transfer their coins to less steadfast investors, future sell-offs could intensify. Schiff, a well-known Bitcoin skeptic, likened the current situation to an "IPO moment" for the cryptocurrency, pointing out that there is now enough liquidity for early participants to exit their positions. He stressed that this movement from "strong hands" to "weak hands" increases the available supply of Bitcoin, making the market more prone to panic selling.

, argued that the cryptocurrency is "finally having its IPO moment," with . He emphasized that this shift from "strong" to "weak" hands increases the float of Bitcoin in circulation, making the market more susceptible to panic-driven selling.

Recent figures highlight this development.

and long-term holders in October alone, contributing to a price plunge below $85,000. High-profile exits include Owen Gunden, an early Bitcoin adopter who sold his entire 11,000 stash ($1.3 billion), and Robert Kiyosaki, author of Rich Dad, Poor Dad, who . These moves reflect a broader pattern of profit-taking among OGs, raising questions about whether retail and institutional buyers can absorb the selling pressure.

Recent data shows that in October alone,

, pushing the price below $85,000. Notable sales include Owen Gunden, an early adopter who sold all 11,000 of his (worth $1.3 billion), and Robert Kiyosaki, the author of Rich Dad, Poor Dad, who . These actions illustrate a trend of profit-taking among original holders, raising concerns about whether the market can absorb this wave of selling.

Volatility driven by options trading has further exposed the market's vulnerability.

- the worst monthly performance since the 2022 and FTX collapses - was exacerbated by gamma exposure, a phenomenon where market makers hedge positions by selling more as prices fall. Chris Newhouse of Ergonia noted that dealers are "short gamma" near key support levels like $85,000, meaning they must offload Bitcoin to maintain neutrality, amplifying downward momentum. , flipping dealers to "long gamma" and potentially stabilizing prices.

Options-related activity has intensified price swings.

marked its weakest monthly showing since the and FTX collapses in 2022. This was worsened by gamma exposure, where market makers hedge by selling more as prices decline. Chris Newhouse from Ergonia observed that dealers are "short gamma" near the $85,000 support, requiring them to sell Bitcoin to balance their positions, which increases downward pressure.

However, not all experts agree with Schiff's pessimistic view.

in Bitcoin ownership, with institutions absorbing selling pressure. U.S. spot ETFs and public companies have accumulated over 2.39 million BTC since early 2024. David Puell of argued that this transition from individual to institutional hands could stabilize volatility over time, as corporate and ETF demand is more resilient to short-term market swings.

Some analysts offer a more optimistic perspective.

in Bitcoin's ownership structure, noting that institutions are now absorbing much of the selling. Since the start of 2024, U.S. spot ETFs and listed companies have acquired more than 2.39 million BTC. David Puell from believes that as Bitcoin moves from individual holders to institutional investors, volatility could decrease, since these entities are less likely to react to short-term market movements.

This split in opinion highlights the prevailing uncertainty. While Schiff warns that "weak hands" could spark panic,

and on-chain metrics signal prolonged bearishness. The Fear and Greed Index hit 14 - a seven-month low - indicating extreme fear among traders