Bitcoin Faces Potential Dip as Institutional Investors Shift, But Long-Term Crypto Future Remains Strong, Experts say
BOSTON, MA – December 6, 2025 – Bitcoin’s price is facing downward pressure as institutional investors reassess risk, potentially triggering an outflow from teh cryptocurrency market, according to Northeastern University finance experts. While a price correction is possible, analysts emphasize that the long-term viability of cryptocurrency remains intact, citing its historical growth and resilience.
The shift comes amid a complex global economic landscape, including fluctuating bond markets and anticipated changes in interest rate policies. The Bank of Japan is expected to raise interest rates – currently around 0% after over a decade – while the Federal Reserve is projected to cut rates in the united States. This potential reversal of “carry trades,” where investors borrow in low-interest currency environments to invest in higher-yield markets, is prompting some investors to reduce exposure to riskier assets like Bitcoin.
“It might potentially be certain investors read this as a warning signal,” said Murat Koparan, a finance professor at Northeastern. “And what you would do in such a situation is you would simply exit high-risk investments, and bitcoin is one of them.” Recent data shows a cooling of investment in crypto funds, with approximately $2 billion in negative flows following significant inflows over the past two years, according to CoinSpeaker.
However, experts caution against predicting a complete market collapse. “In the history of bitcoin,there are multiple time frames that we can relate to the events of today,” Koparan explained.”The only difference today is that this price movement, price action is mostly due to institutional investors.” The market has demonstrated an ability to recover from downturns, notably surviving the November 2022 collapse of FTX, as noted by fellow Northeastern finance expert, Vasant Sarathy.
Despite the current price of around $91,000 – down from a peak of $120,000 – the long-term trajectory of Bitcoin remains remarkable. Sarathy highlighted the cryptocurrency’s growth from zero to its current value over the past 15 years as a testament to its staying power. Investors are also increasingly looking to traditional safe havens, such as gold and silver, as economic uncertainty persists.
