What happened? Coinbase survey finds 67% of institutional investors expect a major Bitcoin rally within 3–6 months.
A Coinbase Institutional and Glassnode survey of 124 respondents found strong bullish sentiment among institutions despite recent sell-offs. That optimism sits against negative funding rates, a recent leverage flush, and about $7 trillion parked in money market funds waiting for a signal. Coinbase also notes potential support from expected Fed rate cuts and demand from digital asset treasuries (DATs) that now hold several percent of BTC and ETH supply.
Who does this affect? Institutions, retail traders, DATs, leveraged traders, and cash managers could all be impacted.
The survey reflects both institutional and non‑institutional views, so big funds and everyday traders are paying attention to any market inflection. DATs and large holders that control a meaningful share of supply can materially influence price through accumulation or selling. Traders with leverage are exposed to liquidations and short squeezes, while money‑market cash holders and fund managers could decide whether to deploy large amounts of capital into crypto.
Why does this matter? A shift from cash and many short positions into crypto could spark a powerful rally, raise volatility, and change cross‑asset correlations.
If rate cuts and positive macro signals prompt even a fraction of the $7 trillion to flow into crypto, that inflow plus DAT demand could push prices much higher and fuel short squeezes toward liquidity zones around $113k–$126k. Negative funding rates today mean shorts dominate derivatives markets, so a reversal could produce amplified upside and rapid moves. At the same time, macro tail risks remain the main downside, so any rally could be volatile and highly sensitive to economic and policy news.