Skittish risk managers could turn Bitcoin’s institutional boom into bust, CEO warns

💡 DMK Insight

Bitcoin’s recent institutional rally might be losing steam, and here’s why that’s crucial for traders: Markus Thielen’s warning about ETF outflows and market fatigue highlights a potential shift in sentiment. If institutional investors start pulling back, it could signal a broader risk-off environment, which often leads to increased volatility. Traders should keep an eye on the correlation between Bitcoin and traditional risk assets; if equities falter, Bitcoin could follow suit. Additionally, watch for key support levels—if Bitcoin breaks below recent lows, it could trigger further selling pressure. On the flip side, if institutions are merely reallocating rather than exiting, there might be hidden opportunities for savvy traders. Monitoring ETF inflows and outflows will be critical in gauging institutional sentiment. The next few weeks will be telling; if we see a rebound in inflows, it could reignite bullish momentum. Keep your charts ready and be prepared for potential swings.