The cryptocurrency market is not experiencing a 'pleasant' 2025. For example, Bitcoin has fallen by 30% over the last month. This situation has also been experienced by others like Ethereum or Solana. What could happen in the future?
According to Carlos Molinillo, an engineer and expert in blockchain and cryptocurrencies, "the strong entry of financial institutions, investment funds, and private companies into the cryptocurrency market over the past year opens a completely different cycle due to their ability to significantly influence the price because of the volume of their positions."
And indeed, for the expert from Learning Heroes, an online university center specialized in disruptive technologies, “institutional investment has been a decisive factor for the past year, particularly with the approval of spot bitcoin ETFs.”
“Crucial role”
The latest data underscores the fact that between 15% and 16% of the total bitcoin supply is in the hands of these institutional players. “This gives them a crucial role in the market and allows them to influence the price.”
But Carlos Molinillo points out a relevant fact: these institutions have an average entry price between $70,000 and $80,000.
“From a risk management and return on investment perspective, it is unlikely that they would allow sharp declines below these levels without intervening, as we would be talking about significant losses in their portfolios,” the expert emphasizes.
That’s why, from his point of view, “we are in a new market from which we must extract constant learnings to make more informed decisions in the future.
What is happening? Well, at this moment, there is a “very interesting divergence. The fundamental macroeconomic indicators are not negative at all, with interest rates in the process of reduction and expectations of new cuts, and employment growing in the United States.”
But despite this favorable macro outlook, “the crypto market is experiencing a widespread correction. It is not just bitcoin. We are seeing declines in ethereum, solana, HYPE, and even BNB, the most important assets of the ecosystem.”
This disconnection between traditional fundamentals and the behavior of the crypto market “will eventually have to resolve in one direction or another.”
Given all that has been stated, the expert from Learning Heroes emphasizes that “the institutional investors who have just entered the market with relatively high prices would not easily allow the historical pattern where market whales liquidate the positions of new participants only to accumulate at lower prices to repeat.”
And he adds: “Its volume and capacity to defend its positions completely change this dynamic.”
In short, Carlos Molinillo summarizes the moment by stating that “it would not make economic sense for the price to fall drastically now, when the institutional investors who have just entered the market have relatively high entry prices and with an improving macroeconomic outlook.”
