Institutional investors bullish on Bitcoin near term amid caution

A new institutional research report released this week found that roughly two thirds of institutional investors expect Bitcoin to rise in the near term, even as analysts caution that macroeconomic risks and recent market volatility warrant a cautious approach. The survey, conducted in late September and early October before the October 10 liquidation event, polled about 120 to 125 global investors and found 67 percent of institutional respondents and about 62 percent of noninstitutional respondents expressed a positive outlook for Bitcoin over the coming months.

The report highlighted several structural tailwinds that could support a renewed upswing, including strong global liquidity conditions, expectations for further Federal Reserve rate cuts, and evolving regulatory dynamics that the authors judged broadly favorable. Researchers estimated that two additional Fed rate cuts this year could draw as much as $7 trillion currently parked in money market funds back into risk assets. At the same time, a custom global money supply index used in the analysis showed leading signals for Bitcoin, though the report warned of an expected liquidity contraction in early November tied to a...