Bitcoin build‑up: a striking split as US banks invest while retail investors panic.
CZ notes that U.S. banks are buying Bitcoin while retail investors sell. Wells Fargo’s $383 million purchase exemplifies the trend. Banks treat BTC as a strategic reserve and hedge against macro uncertainty. Fixed supply, client demand, and clearer regulations drive the shift. Purchases are timed during price dips to build long‑term positions. Retail investors often react to fear, media hype, and social‑media sentiment. Sharp declines trigger automated sells and margin calls, causing losses. Unlike banks, they lack research teams and tend to trade short‑term. Their selling supplies liquidity for institutional buyers. The buy‑high, sell‑low cycle remains a persistent challenge. The divergence follows a timeline: exploration (2017‑20), infrastructure build (2021‑23), and strategic allocation (2024‑25). Bitcoin ETFs opened a regulated channel for institutional capital. Growing institutional ownership may temper volatility and embed crypto in the broader financial system. Regulators now face new oversight and systemic‑risk questions. On‑chain analytics show rising BTC balances in custodial wallets while exchange outflows spike in downturns. Banks typically use dollar‑cost averaging to limit market impact. The contrast in time horizon, decision drivers, and risk management highlights a shift toward strategy over sentiment. This trend could usher a more stable, integrated era for digital assets.
