As Bitcoin prices drop, institutional investors' eyes are on the market.

In recent days, the sharp pullbacks in the cryptocurrency market have begun to be seen as a buying opportunity by some large institutional investors. However, analysts emphasize that this turbulence is not yet over. Over two billion dollars in leveraged positions have been liquidated in the crypto market within the last 24 hours, raising concerns among investors.

According to industry representatives speaking to CNBC, signals of long-term investors gradually returning to the market are strengthening. Matt Hougan, Chief Investment Officer of Bitwise, stated that the recent sell-off demonstrates a classic conflict between short-term fear and long-term faith. Hougan noted that some of the world's largest institutional investors, such as the Harvard fund and Abu Dhabi sovereign fund, view the pullback in Bitcoin prices as potential entry points.

Hougan acknowledged that the mid or low seventy thousand dollar levels are at stake for Bitcoin prices, arguing that the market is closer to the bottom of this downturn than at its beginning. Some investors are watching the eighty-four thousand dollar level seen in March, while others believe prices could drop to around seventy thousand dollars, a region before the Trump elections.

According to Hougan, liquidity conditions remain the most decisive factor. He stated that the decline in global liquidity has also led to a drop in crypto and that the trading of digital assets continues to unravel. Eric Johnston, Chief Strategist at Cantor Fitzgerald, explained that the recent sell-off is the result of a broad risk-reduction cycle affecting both crypto and artificial intelligence stocks, and he expressed that this cycle is bringing the system to a healthier point.

Johnston also emphasized that the growth of the stablecoin market and the development of the regulatory framework could reduce volatility in the long term. Both analysts noted that the long-term outlook is dependent on the macro environment. Johnston conveyed that potential interest rate cuts and the likelihood of monetary expansion in 2026 could be extremely supportive for Bitcoin, while Hougan stated that despite short-term pressures, the narrative of protection against depreciation remains strong.

At the time of the report, the GMCI 30 index was trading at a level of 149.50. The index has lost approximately 12 percent in the past week and 30 percent over the past month.