An analysis says institutional investors' cryptocurrency strategies have been reshaped around bitcoin (BTC) and ether (ETH) since the October 2025 "crash". Risk management has tightened after the shock from leverage liquidations, while quantum computing risks and regulatory uncertainty remain variables affecting institutional inflows.

On Feb. 17, blockchain media outlet Cryptopolitan reported that the sharp drop on Oct. 10, 2025, fundamentally changed institutional investors' strategies.

At the time, $19 billion in leveraged positions were liquidated, collapsing not only bitcoin but also the altcoin market. Billionaire investor Kevin O'Leary (케빈 오리어리) said, "After that crash, institutional investors concluded they only need to hold bitcoin and ethereum to earn 90 percent of the returns." He said he also closed 27 positions and left only bitcoin and ethereum. This is seen as a strategy to reduce risky assets and focus on core holdings.

One reason cited for why institutions are not jumping aggressively into cryptocurrencies is "quantum computing risk". With the possibility raised that quantum computers could in the future neutralise bitcoin's cryptographic system, some investors are said to limit their crypto allocation to around 3 percent.

Bitcoin developers have pushed a security update through BIP-360 to prepare for potential quantum attacks. It is described as an initial response, with further supplementation and improvements expected to follow.

Changes are also being detected on the regulatory front. O'Leary said, "The U.S. Congress will approve legislation defining the cryptocurrency market structure before the midterm elections," and he predicted regulatory tightening would have a positive effect on the market. But bitcoin is currently trading around $67,700 without major swings, and investors are likely to stay on the sidelines until regulatory and quantum computing risks are resolved.

The October crash last year reminded investors of the importance of risk management and became an opportunity to strengthen a core-asset-focused strategy. Unless regulatory and technical risks are resolved, bitcoin's rangebound movement is expected to continue for some time.

The market sees the trend of institutional allocations tilting toward "BTC-ETH concentration" continuing for the time being. But until regulatory uncertainty is resolved and responses to technical risks such as quantum computing become concrete, limited participation is expected to dominate over aggressive increases in exposure. As a result, bitcoin is seen as likely to continue moving within a range until a clear catalyst emerges.

Bitcoin just took another brutal correction, down 50%, and no, this isn’t the first time we’ve seen this movie. But something bigger is happening underneath the price action. Back in October when everything melted, Bitcoin got slaughtered and the rest of the market was wiped… pic.twitter.com/reEkAt41Lf