Why do institutions buy more as prices fall? Analyzing Bitwise's recent trading breakdown of professional bottom-fishing strategies.

February 11, 2026, Bitwise CEO Hunter Horsley revealed a highly symbolic detail on social media: a wealth management client who had been in contact with Bitwise for two years and had never previously allocated to crypto assets officially entered the market during this correction, purchasing $11 million worth of Bitcoin.

Horsley’s comment hits the core: “For investors who haven’t yet entered, a correction is an opportunity. People often forget that many professional investors are essentially ‘bottom-fishers’ by profession.”

This case has sparked widespread discussion within the industry, not only because of the significant amount involved but also because of its sample value—it fully illustrates the psychological journey of traditional financial institutions from “watching on the sidelines for two years” to “placing a one-click order.” While many retail investors remain trapped in the emotional mud of “should I cut losses,” professional funds are already voting with dollars.

Real-Time Crypto Market: Latest Prices of Mainstream Assets on February 13

As of February 13, 2026, the prices of major crypto assets on the Gate platform are as follows:

From the market data, sentiment remains extremely fearful. If Bitcoin can regain the $70,000 level, market sentiment may improve.

In-Depth Analysis: Why Do Professional Investors See Declines as “Entry Signals”?

1. Cognitive Gap: Retail Focus on “Unrealized Loss,” Institutions Focus on “Relative Value”

Ordinary investors tend to equate falling prices with asset devaluation, but the underlying logic for institutional investors is entirely different.

Matt Hougan, Chief Investment Officer of Bitwise, recently stated in an interview: “Most of the funds managed by professional investors currently do not hold Bitcoin. They’re not waiting for ‘lower prices,’ but for ‘the decision process to be completed.’”

This explains why the Bitwise client chose to enter “now”—not because they predicted the bottom, but because their two-year due diligence process was complete, and the price had just returned to the starting point of that process. For institutions, there’s no good or bad price—only whether it fits their valuation model.

2. From “Fear of Volatility” to “Utilizing Volatility”: A Three-Stage Leap

Horsley summarizes the evolution of professional investor mentality into three major shifts:

• Drop = Opportunity: In traditional markets, bear markets are always windows for professional buyers to build positions, and crypto markets are priced similarly.
• Volatility = Norm: After multiple bull and bear cycles, institutions have become accustomed to 20%-40% retracements, viewing them as part of price discovery rather than systemic failures.
• Long-term Focus Replaces Timing Anxiety: An increasing number of wealth management firms are evaluating Bitcoin’s value over 5-10 years.

This is a key marker of market maturity: when emotional traders exit, pricing power shifts to asset-balance sheets.

Institutional Behavior Breakdown: From “8 Meetings” to “$11 Million” Decision Path

Matt Hougan revealed a crucial detail: the average Bitwise client requires 8 meetings over 2 years before allocating assets.

This implies:

• Morgan Stanley only approved Bitcoin ETFs in Q4 2025, just as the “8 meetings” cycle was beginning
• The peak of mainstream entry may not arrive until 2027
• The current correction is precisely the “golden window” between two waves of capital inflows

The $11 million isn’t an isolated case. Hougan said that recently, Bitwise clients added $100 million in net inflows when BTC broke below $77,000. “Volume is high, with both sellers and buyers.”

This isn’t a retreat; it’s a turnover.

Market Structural Transformation: Bitcoin Shifting from “Retail Game” to “Macro Allocation Tool”

Narrowing Retracement: “Deceleration” of the Cycle

ARK Invest’s latest research reports that in this cycle (2022-2026), Bitcoin’s retracement from its all-time high has never exceeded 50%, significantly lower than previous cycles’ 70%-80%.

The significance: the bottom is being systematically elevated. The market is no longer a “zeroing game,” but a “high-beta macro asset.”

Who Holds? — ETFs + Treasury Reserves + Sovereign Funds

• The amount of BTC absorbed by spot Bitcoin ETFs and Digital Asset Treasuries (DAT) in 2025 is 1.2 times the new supply
• As of February 2025, ETFs and DAT hold over 12% of the total supply
• The US Strategic Bitcoin Reserve (SBR) holds about 325,437 BTC, accounting for 1.6%

These funds share a common trait: long-term holding rather than short-term trading. They form an unprecedented “price damping network.”

Three Laws of Institutional Bottom-Fishing: How Gate Users Understand and Follow

Law 1: Don’t Predict the Bottom, Manage Costs

Bitwise clients don’t aim to “buy at the lowest,” but their positions are strategic. For retail investors, DCA (Dollar-Cost Averaging) remains the only proven effective strategy over time.

Law 2: Liquidity Is the Last Fortress

In this deleveraging cycle, the first to retreat are high FDV altcoins and meme coins. Capital concentration into BTC and ETH signals risk aversion and is an inevitable path in mature markets.

Law 3: Tools Define Behavioral Boundaries

Institutions can “buy against the trend” because their trading systems support conditional orders, grid trading, dollar-cost averaging, and other non-emotional execution tools.

Gate provides users with a professional toolbox:

• DCA plans: automatic daily/weekly buys of BTC/ETH, with system-determined average prices
• Spot grid: buy low and sell high in volatile markets to capture swings
• Copy trading: observe real-time rebalancing by professional traders

Summary

JPMorgan’s recent report states that the main driver of crypto market recovery in 2026 will be institutions, not retail investors. The advancement of the CLARITY Act, the implementation of stablecoin regulations, and the expansion of sovereign reserves are all pushing Bitcoin into the core of traditional finance.

Horsley put it plainly: “The crypto market is maturing.”

For investors still on the sidelines, the $11 million from Bitwise clients is a signal and a metaphor—professional funds never leave because of fear; they wait because prices are not right.

When the wait ends, every correction becomes a conveyor belt for old players to exit and new players to board.