Bitcoin’s recent institutional-driven surge could face a sharp reversal as risk managers grow increasingly cautious, according to Markus Thielen, CEO of a prominent digital asset firm. Thielen highlighted that sustained outflows from spot Bitcoin exchange-traded funds (ETFs) and growing market fatigue are undermining institutional risk appetite. The warning comes amid signs that professional investors are reassessing their exposure to cryptocurrency markets following months of elevated inflows. Thielen noted that while institutional participation initially fueled Bitcoin’s upward trajectory, the current shift in sentiment among risk management professionals could trigger significant selling pressure. Market data reveals consistent ETF outflows coinciding with declining trading volumes, suggesting institutional momentum may be waning. This development poses a critical test for Bitcoin’s price stability as the market transitions from retail-driven to institutionally-dominated trading patterns. Thielen emphasized that without renewed institutional confidence, the digital asset could face substantial downward pressure. The cautionary outlook reflects broader concerns about cryptocurrency market maturity and the sustainability of institutional adoption cycles.
