Institutional interest in Bitcoin and crypto could be one reason for the recent sell-off. While major financial institutions have lots of money to pour into the crypto market, their appetite for risk is much lower than retail investors, and Bitcoin is still broadly seen as a risky asset.
Chris Waller, a governor of the United States Federal Reserve, spoke to this effect at a recent monetary policy conference. He said that much of the “euphoria” around crypto that accompanied the new administration of President Donald Trump is now fading.
