‘Bitcoin Retail Investors Are All In’ And That’s Why There’s No Floor,

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Blockstream CEO Adam Back told CNBC that Bitcoin (CRYPTO: BTC) lacks downside support because retail investors are “all in” with no cash left to buy dips, explaining the 25% year-to-date decline.

Back on Monday explained that Bitcoin’s weakness during sell-offs stems from how retail investors hold the asset.

Unlike traditional stock investors who can sell one holding to buy another when prices drop, Bitcoin retail investors already put everything into crypto.

“Bitcoin tends to be a little weak to the downside because many of the retail investors end up being all in,” Back said. “They don’t have a lot of capital to buy Bitcoin.”

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He compared this to traditional investing. Mutual funds watching analyst reports might sell Microsoft to buy Tesla when Tesla looks cheaper.

Bitcoin retail investors can’t do this because they’re already fully allocated to crypto with no other positions to sell.

This creates a structural problem.

When Bitcoin drops, existing holders can’t step in to buy because they already spent their cash.

There’s no natural buyer base among current holders to catch falling prices.

However, institutional investors change the equation by bringing the ability to shift money between asset classes.

They can sell bonds or stocks to buy Bitcoin when it looks cheap.

The downside is this also makes Bitcoin move with broader market fear in the short term.

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Back defended Bitcoin treasury companies against suggestions they worsen price declines.

He argued they actually help by continuously buying and taking Bitcoin off the market—a strategy MSTR pioneered years ago.

“They are generally supportive for the Bitcoin price because for the most part they try to hold, buy and accumulate,” Back said. “They’re effectively taking Bitcoin off the market. Even today they’re buying Bitcoin.”

Back’s own company, Bitcoin Standard Treasury, expects SPAC approval around April.

He said lower Bitcoin prices actually help because they can launch with a cheaper entry point and accumulate more Bitcoin, targeting the number three spot globally among Bitcoin treasury companies.

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Back attributed Bitcoin’s decline to geopolitical uncertainty and tariff news affecting all risk assets.

Bitcoin follows these macro moves short-term but stays independent long-term.

On prediction markets and derivatives, Back dismissed worries that betting platforms drain retail demand.

Unlike gold with lots of synthetic exposure, Bitcoin markets are mostly physical holdings with very few long-term shorts.

This means derivatives don’t meaningfully impact the underlying price.

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