An assessment said institutional investors see bitcoin’s recent downturn as a buying opportunity.

On June 9 (local time), blockchain media outlet CoinPost reported that John D’Agostino (존 다고스티노), Coinbase’s head of institutional investor strategy, appeared on CNBC’s Squawk Box and said institutional demand for bitcoin has not weakened.

D’Agostino said family offices and sovereign wealth funds are welcoming current price levels. He added, "They were of course happy when it was $125,000 at last year’s all-time high (ATH), but they are more aggressive at $65,000."

Bitcoin briefly fell as low as $59,200 on Saturday last week, marking its lowest level since October 2024. It has fallen sharply from the high recorded in October last year, but Coinbase argues signs of institutional money leaving are limited.

Spot exchange-traded fund (ETF) flows were also presented as part of the rationale. D’Agostino said, "The price is down about 50 percent from the peak, but the decline in retail investors’ spot ETF balances was only about 15 percent," adding that spot ETF exposure of about $100 billion is still being maintained. The fact that ETF holdings did not swing sharply despite the steep price drop is being read as defensive demand from both institutions and individuals.

Strategy also announced it bought 1,550 BTC for about $100 million from June 1 to 7. The average purchase price was $65,332 per BTC, and it funded the purchase with $181 million secured by selling 1,409,600 shares of Class A common stock.

The purchase was Strategy’s first repurchase after selling 32 BTC in late May. At the time, the market reacted sensitively to the sale news, the first since December 2022, and concerns emerged about whether the company’s bitcoin strategy was changing. By contrast, Luigi Donorio DeMeo (루이지 도노리오 데메오) of DeFi protocol Aave cited Michael Saylor posting a chart on X, formerly Twitter, hinting at additional buying, and said the 32 BTC sale may have been psychological tactics to meet index-inclusion requirements.

The policy environment was also cited as a factor supporting institutional interest. D’Agostino mentioned legislative moves in Washington, and more than 200 digital asset companies and groups, including Coinbase, sent a letter the same day to U.S. Senate leadership urging a floor vote on a crypto market structure bill called the "Clarity Act." This suggests institutions are watching both the price correction and the possibility of regulatory overhaul at the same time.

Despite concerns about leverage risk, D’Agostino drew a line. He said, "I don’t see large institutions that have built up excessive leverage," and added, "Large holders have sufficient capacity to deploy additional capital into the market." He judged it unlikely that the recent decline would spread into a chain reaction of anxiety driven by forced liquidations.

Ultimately, what the market is watching in this downturn is whether institutional money exits. So far, spot ETF balances are holding around $100 billion, and with Strategy resuming purchases, how much institutional demand acts as a backstop during the price correction is emerging as the next key point to watch.