The Shocking Truth Behind How Institutions Made Bank During BTC and ETH’s Market Crash

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Key Takeaways

Are institutions buying Bitcoin and Ethereum during the crash?

Ah, the usual story of the mighty crashing while the opportunists pounce-U.S. institutions, ever the savvy investors, saw Bitcoin and Ethereum’s plunge as a golden chance to scoop up more. A “buying opportunity,” they say. How quaint. 😏

What kind of leverage is driving the market now?

Unlike the retail gamblers who risk it all on wild bets, the big boys are playing a different game. They’re using market-neutral strategies, like basis trades, and keeping it cool while others sweat bullets. But hey, what’s new? 😜

In the face of the largest one-day liquidation in crypto history, Bitcoin [BTC] and Ethereum [ETH] were apparently “still hot,” as hedge funds jumped in to buy even more. Did they panic? Nah. They just turned the market dive into a shopping spree. Ah, the sweet taste of profit amidst the chaos. 😎

Institutional buyers step in as BTC crashes

When Bitcoin nosedived from $123,000 to $110,000 on October 10th, one would think the financial world would gasp in horror. But no-institutions were gobbling up those sweet, sweet dip prices. Talk about cold-blooded, calculated moves. 🤑

The Coinbase Premium Index went through the roof, reaching levels not seen since March 2024. Apparently, U.S. institutions didn’t just watch in horror; they were buying with enthusiasm while everyone else panicked. Market dips? Pfft. More like clearance sales for them. 😏

Now, the real question: Are the markets “crashing,” or is it just an ongoing game of “buy low, sell high”? The major players don’t seem to care either way, they’re just stacking their bags while others freak out. 😜

The market has Ethereum’s back, too

But wait, Ethereum wasn’t left in the dust. Oh no, ETH had its own dramatic show of strength during the crash.

On October 10th, as crypto prices nosedived, Ethereum’s Coinbase Premium Gap shot up to a historic 6.0-its highest level in 2025. Yeah, that’s right-while the world was losing its mind, U.S. institutions were in a full-on buying frenzy. What a sight to behold! 🤑

And here’s the kicker: While everyone was looking at Bitcoin, Ethereum was out here outperforming its big brother in the post-liquidation rally. On October 13th, ETH/BTC surged from 0.033 BTC to nearly 0.036 BTC. Not too shabby, right? 📈

A new kind of leverage is taking over BTC

But don’t think this momentum is just some random fluke. Oh no, there’s more to the story. And guess what? It’s not what you think.

Bitcoin Open Interest across all exchanges hit a record-breaking $34.9 billion, with one-third of that sitting on CME-the go-to platform for hedge funds and asset managers. Now that’s what we call “serious business.” 😏

Unlike the retail crowd that chases big swings, these institutional players are all about steady, calculated returns. Basis trades, market-neutral strategies, and stable funding rates dominate the scene. No crazy swings, just a smooth ride toward more profits. 🍸

So while you might be holding your breath over the next crash, remember: some are using this volatility as their playground. Who’s winning? Not the retail investors, that’s for sure. 😎

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2025-10-13 12:13