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Institutional Bitcoin Demand Surges, Retail Investors Face Challenges

Coin WorldThursday, May 1, 2025 4:42 pm ET

1min read

Institutional investment in Bitcoin is accelerating, potentially pricing out retail investors, according to a panel discussion at the LONGITUDE event in Dubai. Sergej Kunz, co-founder of exchange aggregator 1inch, warned that retail investors may soon find it difficult to afford Bitcoin as institutional demand surges.

Kunz highlighted that Bitcoin is evolving into an alternative reserve currency, driving institutional interest. He suggested that if the United States begins to buy Bitcoin for its strategic reserve, even smaller countries may struggle to acquire the cryptocurrency. "I’m pretty sure we’ll soon see countries battling over who owns more Bitcoin. The US will start,” Kunz said.

The panel also discussed how global trade tensions, sparked by US President Donald Trump's tariffs, have increased demand for Bitcoin as a hedge against inflation and economic uncertainty. Yat Siu, co-founder of Animoca Brands, stated that Bitcoin is the only true hedge across borders and against inflation.

The panelists noted that institutional demand for Bitcoin has been robust, with Bitcoin exchange-traded funds (ETFs) attracting significant inflows. Analysts have predicted that institutional demand could push Bitcoin’s price to as high as $200,000 per coin this year, and past $1 million by 2029, according to the analyst's forecast.

David Siemer, co-founder and CEO of wave digital Assets, pointed out that economic uncertainty has historically accelerated institutional interest in digital assets as a diversification strategy. As of May 1, institutional funds hold a substantial amount of Bitcoin, indicating the growing institutional adoption of the cryptocurrency.

The panelists emphasized the need for regulatory frameworks that can balance the interests of both institutional and retail investors. They suggested measures that promote transparency, prevent market manipulation, and encourage competition in the cryptocurrency market.

In conclusion, the LONGITUDE panel's discussion highlighted the growing influence of institutional investors in the Bitcoin market and the potential challenges it poses for retail investors. As institutional Bitcoin buying continues, it is crucial for regulators and market participants to work together to create a balanced and inclusive cryptocurrency ecosystem.

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