Big investors signal dip-buying resolve

Major investors show readiness to buy downturns emerges as the central takeaway from the polling, which canvassed asset managers, hedge funds, pension-linked vehicles and family offices with active exposure to crypto markets. The responses suggest that the sharp price swings that once deterred large pools of capital are increasingly being absorbed into long-term portfolio strategies.

The survey shows that roughly 80% of respondents would maintain or add to their positions during a moderate drawdown, while a smaller minority would reduce exposure or pause new allocations. Participants cited improved market infrastructure, deeper liquidity and clearer institutional custody options as reasons for greater confidence in weathering short-term declines. Many also pointed to the maturation of derivatives markets, which allow for more effective hedging during periods of stress.

This stance marks a notable evolution from earlier cycles, when steep sell-offs often triggered forced liquidations and rapid withdrawals by large holders. Portfolio managers now appear more inclined to frame volatility within multi-year investment horizons, aligning crypto exposure with broader allocations to growth-oriented or alternative assets. Several respondents described digital assets as a structural component of portfolios rather than a tactical trade.

Another theme emerging from the data is a growing distinction between retail sentiment and institutional behaviour. While individual traders have historically amplified swings through momentum-driven buying and selling, large investors reported a greater focus on fundamentals such as network usage, protocol revenues and long-term adoption metrics. This analytical approach, respondents said, reduces the impulse to exit positions during routine corrections.

The willingness to buy dips is also linked to expectations around macroeconomic conditions. Some participants anticipate that easing monetary policy cycles in major economies could support risk assets over time, even if short-term uncertainty persists. Others highlighted the role of digital assets as a hedge against currency debasement or geopolitical shocks, arguments that continue to resonate with long-horizon investors.

Market structure has played a role in reinforcing confidence. The expansion of regulated trading venues, improvements in compliance standards and the entry of established financial institutions into custody and brokerage services were frequently cited as factors that have lowered operational risk. Investors noted that these developments make it easier to justify sustained exposure to investment committees and trustees.

At the same time, respondents did not dismiss risks. Concerns remain around regulatory divergence across jurisdictions, technological vulnerabilities and the potential for abrupt sentiment shifts triggered by security breaches or policy interventions. However, many argued that these risks are now better understood and priced into allocation decisions, reducing the likelihood of panic-driven exits.

The survey also reflects a broader trend towards selective accumulation rather than indiscriminate buying. Investors indicated a preference for assets with high liquidity, established track records and clear use cases, while remaining cautious about smaller tokens with limited transparency. This selectivity suggests that capital inflows during downturns may be concentrated in a narrower set of assets, potentially reinforcing market leadership at the top end.

For market participants, the implications are significant. A cohort of large investors prepared to add exposure during declines could provide a stabilising influence during periods of stress, dampening extreme downside moves. Analysts note that while this does not eliminate volatility, it may reduce the depth and duration of sell-offs compared with earlier cycles dominated by speculative flows.