Bitcoin Bleeding, Institutions Panic — Cardone Capital Scoops BTC Anyway as Market Drowns in Fear

Cardone Capital Buys Bitcoin Amid Market Turmoil as Institutions Absorb Heavy Losses

As the cryptocurrency market reels from one of its sharpest downturns in months, not all major investors are stepping back. While fear dominates headlines and institutional losses continue to mount, Cardone Capital has taken the opposite approach. The private investment firm founded by entrepreneur and real estate investor Grant Cardone has confirmed a fresh Bitcoin purchase, signaling conviction at a time when much of the market is retreating.

Cardone revealed that his firm acquired additional Bitcoin at prices around $72,000, a move that immediately drew attention across the crypto community. The decision comes as Bitcoin struggles under heavy selling pressure, declining sharply over recent days and erasing hundreds of billions of dollars in total market value.

Speaking publicly, Cardone addressed critics and cautious investors who are waiting on the sidelines for lower prices. He suggested that what the market is experiencing now may already represent the kind of discount many have been hoping for. He also dismissed long-standing claims that Bitcoin could collapse to zero, noting that such predictions have circulated for years without materializing.

Source: X

The message was unmistakable. In periods of market stress, some investors rush to reduce exposure, while others see an opportunity to accumulate assets they believe will hold long-term value.

Why Cardone Capital Is Buying Bitcoin During a Downturn

When an investment firm chooses to increase exposure during a market decline, it often reflects a long-term outlook rather than a focus on short-term price movements. Cardone framed his reasoning in simple terms, emphasizing Bitcoin’s limited supply and its potential demand among wealthy individuals.

He argued that if even a fraction of the world’s estimated 60 million millionaires decided to purchase a single Bitcoin, the available supply would tighten rapidly. With Bitcoin’s fixed maximum supply of 21 million coins, Cardone believes scarcity could once again become a dominant driver of price appreciation over time.

This perspective aligns with a traditional long-term investment thesis that views Bitcoin as a store of value rather than a speculative trading instrument. Supporters of this view often compare Bitcoin to digital gold, highlighting its decentralized nature and resistance to inflationary monetary policies.

However, Cardone’s logic did not go unchallenged.

Several market participants responded that Bitcoin’s pricing dynamics have evolved significantly over the past few years. Unlike earlier cycles, today’s market is heavily influenced by derivatives, including futures contracts, options, and exchange-traded funds. These instruments allow investors to gain exposure to Bitcoin’s price without owning the underlying asset.

Critics argue that this expansion of what is sometimes called “paper Bitcoin” has reduced the direct impact of physical scarcity on price action. In highly leveraged markets, short-term movements can be driven more by liquidations and derivatives positioning than by spot supply and demand.

The Role of Leverage in Today’s Bitcoin Market

The growing influence of leverage has become increasingly evident during periods of volatility. When prices fall rapidly, leveraged positions are often forced to unwind, triggering cascading liquidations that accelerate declines.

Over the past 24 hours alone, leveraged liquidations across the crypto market have surged toward $800 million, according to industry data. These forced sell-offs can push prices lower regardless of long-term fundamentals, amplifying fear and uncertainty.

This dynamic helps explain why Bitcoin’s recent drop has felt unusually aggressive. Even investors who remain confident in Bitcoin’s future have acknowledged that short-term price action is being driven more by risk management and deleveraging than by changes in the asset’s core narrative.

Institutional Pressure Builds as Losses Mount

While Cardone Capital’s decision to buy Bitcoin has drawn attention, other major players are facing the consequences of the market’s rapid reversal.

Strategy, the business intelligence firm led by prominent Bitcoin advocate Michael Saylor, is reportedly sitting on approximately $3.8 billion in unrealized losses on its Bitcoin holdings following the recent decline. Although these losses are not realized unless the assets are sold, they underscore the scale of the market’s downturn.

Saylor has long championed a buy-and-hold strategy, encouraging investors to view Bitcoin as a multi-decade asset rather than a short-term trade. Even so, sharp drawdowns inevitably test investor confidence, particularly when they occur over a short period.

The situation highlights a broader reality facing institutional investors. As Bitcoin has become more integrated into traditional financial markets, it has also become more sensitive to shifts in macroeconomic sentiment.

Bitcoin Price Update and Recent Performance

At the time of writing, Bitcoin is trading near $71,550, down approximately 6.1% over the past 24 hours and nearly 20% over the past week, according to market data. The speed of the decline has unsettled both retail traders and professional investors, many of whom were positioned for continued strength earlier in the month.

Source: CMC

The broader cryptocurrency market has not been spared. Total market capitalization has fallen by nearly $900 billion in a matter of weeks, erasing gains accumulated during the previous rally.

What Is Driving the Bitcoin Price Decline?

Several overlapping factors appear to be contributing to the current sell-off.

Heavy Institutional Selling
Spot Bitcoin exchange-traded funds have recorded roughly $1.2 billion in net outflows over the past week. This suggests that institutional investors are reducing exposure, either to lock in profits or to manage risk amid growing uncertainty.

In addition, data shows a deeply negative Coinbase Premium Gap, a metric often interpreted as a sign that U.S.-based institutional investors are selling Bitcoin at a faster pace than global counterparts.

A Global Risk-Off Environment
Beyond crypto-specific factors, broader financial markets are also under pressure. Weak earnings reports from major technology companies have triggered sell-offs across equity markets, prompting investors to move away from riskier assets.

In times of economic uncertainty, assets like cryptocurrencies often experience heightened volatility as investors seek liquidity and safer positions.

Large Holder Movements and On-Chain Signals
On-chain data has added to market anxiety. The Royal Government of Bhutan recently moved more than 184 Bitcoin to exchanges and trading firms. While such transfers do not always result in immediate sales, they are frequently interpreted as potential sell signals.

Large movements from long-term holders or sovereign entities can influence sentiment, especially during already fragile market conditions.

Stress Signals Across the Crypto Market

The combined effect of institutional outflows, leveraged liquidations, and macroeconomic uncertainty has created significant stress across the crypto ecosystem.

Trading volumes have spiked as volatility increased, and sentiment indicators have plunged into what many analysts describe as “extreme fear” territory. Historically, such conditions have sometimes preceded market bottoms, but they have also led to further downside in past cycles.

This environment makes Cardone Capital’s decision to buy Bitcoin particularly notable. At a time when caution is widespread, the firm’s move stands out as a contrarian bet on Bitcoin’s long-term resilience.

Short-Term Outlook for Bitcoin

From a technical perspective, Bitcoin remains under pressure. Analysts are closely watching key support and resistance levels as traders attempt to gauge the next move.

If Bitcoin fails to reclaim the $72,000 to $73,000 range, some traders believe the market could test lower support near $65,000. On the other hand, sharp sell-offs are often followed by temporary rebounds as oversold conditions attract buyers.

Market observers caution that volatility is likely to remain elevated in the near term, particularly as macroeconomic data and institutional flows continue to influence sentiment.

Fear Versus Conviction in a Volatile Market

Market downturns often reveal the true nature of investor conviction. While some participants rush to reduce exposure during periods of stress, others quietly accumulate assets they believe are undervalued.

Cardone Capital’s Bitcoin purchase reflects a belief that the long-term investment case for the asset remains intact, despite short-term turbulence. Whether this move proves to be perfectly timed or simply early will depend on how the market evolves in the coming months.

For now, the decision serves as a reminder that even in moments of widespread uncertainty, not all investors see risk the same way. Some view volatility as a threat, while others see it as an opportunity.

As the crypto market continues to navigate a challenging period, the contrast between fear and conviction is becoming increasingly clear.

hokanews.com – Not Just Crypto News. It’s Crypto Culture.

Writer @Erlin
Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.
 
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