Bitcoin fell below $60,000 for the first time since October 2024 on Monday, sinking as low as $59,099 – a move that marks a drop of more than 50% from its all-time high near $126,000.
But according to John D’Agostino, Coinbase’s head of institutional strategy, the decline is welcomed – not feared – by the most sophisticated players in the market.
Appearing on CNBC’s Squawk Box Monday morning, D’Agostino said the institutional investors he talks to regularly see the pullback as an opportunity to stockpile at a discount, not a reason to panic.
“I just got off the plane from the Middle East, and I can tell you that the family offices in the UAE and the government and private funds that are trying to buy this asset class are happy to be able to buy it at a discount,” said D’Agostino.
His comments are in line with recent data showing institutional purchases have been sustained during the downturn.
Abu Dhabi’s Mubadala Investment Company – a $330 billion private equity fund – reported holding 14.7 million shares of BlackRock’s iShares Bitcoin Trust (IBIT) as of March 31, 2026, a 16% quarter-over-quarter increase, marking four consecutive quarters of gains as BTC fell 40% on par.
“100 Billion Dollars of Bitcoin ETF Exposure”
Despite Bitcoin’s steep correction, D’Agostino pointed to a surprising statistic as evidence of strong retail conviction: Bitcoin ETFs still hold nearly $100 billion in exposure even after the price has fallen nearly 50% from its highs.
“The price is down about 50% from the high, and we’ve only seen a 15% drop in retail interest,” D’Agostino noted. “So I think both retail and institutional are showing that this is a long-term asset that you want to hold.”
BlackRock’s iShares Bitcoin Trust alone held about $51.9 billion in assets under management as of the start of this year, representing about 45% of all Bitcoin ETF assets.
Other reasons for pulling back
When pressed to identify the drivers behind Bitcoin’s “winter,” D’Agostino largely agreed with the list provided by the Squawk Box host, which included: risk sentiment pushing investors to more liquid positions; interest rates remain high, weakening the trade hypothesis of deflation; the remaining legal clarity in the legal situation; and Strategy’s Michael Saylor breaking his long-standing “never sell” vow by divesting part of the company’s Bitcoin holdings.
Saylor’s firm made a sale of 32 bitcoins between May 26 and May 31 for an estimated $2.5 million – a move that upset market sentiment even though it represented just 0.004% of Strategy’s total 843,000+ BTC holdings. The sell-off triggered a sharp negative market reaction that sent BTC down below $72,000 before the broader slide continued.
D’Agostino also pointed to the 100-day war with Iran and the closure of the Strait of Hormuz as a major overreach using pressure to risk assets around the world, while noting that crude oil remains surprisingly low below $100 a barrel – a reminder that volatility in complex environments does not always follow intuition.
On the legislative side, D’Agostino highlighted bills currently circulating in Congress that he said would strengthen the institutional infrastructure that supports Bitcoin and digital assets in general. The Digital Asset Market Clarity Act – known as the CLARITY Act – cleared the Senate Banking Committee on May 14, 2026 by a vote of 15-9, marking the first comprehensive crypto regulatory framework to advance to the Senate floor.
A separate bill, the PARITY Act, which addresses the crypto tax, is also on track for independent legislation with bipartisan support.
There is no panic at the institutional level
When asked about the risk of powerful owners facing margin calls and being forced to liquidate at low prices, D’Agostino said he was not aware of any major institutional players who were “terribly strong” at levels near current prices. He said the biggest risk remains for the retail traders in the sea trade who provide a lot of power.
“On the institutional side, I don’t see people panicking right now,” said D’Agostino. “I see them thinking about what’s the cheapest way for them to get new money to buy a property that they liked for $125K, they liked for $100K, and they liked it even more for $65K.”
Strategy appeared to reinforce that point on Monday, disclosing that it bought an additional 1,550 BTC for $101 million — buying a dip to nearly $65,000 per coin just days after selling 32 coins for $77,135 each.
