Coinbase's head of institutional strategy, John D'Agostino, is refuting the narrative that institutions are panicking over bitcoin's recent slide to $59,100. According to him, governments and family offices see the drop as an opportunity to accumulate more bitcoin at a lower price.
Institutional investors who bought bitcoin near $125,000 may want it even more around $60,000, D'Agostino claims. He points out that sovereign wealth funds and family offices in the UAE have been actively purchasing bitcoin during this period.
D'Agostino's thesis is that conviction buyers measure value differently than traders who chase momentum. He believes that institutional investors are willing to buy bitcoin at a discount because they see it as a long-duration store of value, similar to gold.