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.
The ‘All In’ Problem
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.”
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 …