Bitcoin (CRYPTO: BTC) could eventually go to $1 million if it does not go to zero, but institutions, not retail, are increasingly driving the market’s long-term direction, according to Anthony Pompliano.
Why Is Bitcoin Sentiment So Low?
In the latest “From The Desk Of Anthony Pompliano” podcast, Pompliano said the artificial intelligence arms race is accelerating even as Bitcoin sentiment has plunged to extreme lows, driven largely by retail capitulation.
Citing data from Binance Research, he noted that Bitcoin’s Fear & Greed Index recently fell to 5, one of the lowest readings on record and below levels seen during prior major crypto shocks.
Unlike earlier cycles, however, prices and adoption remain structurally higher, suggesting the ecosystem is significantly larger and more institutionalized despite negative sentiment.
Pompliano also referenced ownership data from River showing Bitcoin supply shifting from individuals to businesses, funds, exchange-traded funds and governments. Retail investors appear to be distributing holdings while institutions accumulate.
Spot ETF assets under management have remained relatively stable despite price volatility, signaling steady institutional allocations.
Institutional Engagement Moves Beyond ETFs
Pompliano said institutional participation is evolving beyond passive ETF exposure.
BlackRock has expanded activity involving Uniswap (CRYPTO: UNI), while Apollo Global Management partnered with Morpho, underscoring deeper integration with on-chain financial infrastructure.
Performance trends reflect that shift.
The NEO Finance N7 index has outperformed DeFi Layer-1 and Layer-2 indexes by more than 20% year to date and has also outpaced Bitcoin, as revenue-generating protocols tied to active financial infrastructure show greater resilience than the broader market.
Pompliano concluded that while retail investors are capitulating amid extreme fear, institutions are accumulating, tuning out short-term volatility (“noise”) and positioning for long-term exposure to Bitcoin and the broader crypto market.
Image: Shutterstock
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