He portrayed the latest downturn as part of a broader institutional reassessment, with capital rotating away from smaller tokens after steep drawdowns.
“The idea that a quantum computer could eventually break the chain is making institutions hesitate, and until that gets resolved, don’t expect them to go beyond a 3% allocation.”
FAQ ⏰ Why does Kevin O’Leary say bitcoin’s 50% correction is not unusual? He argues bitcoin has experienced similar 50% drawdowns before as part of recurring crypto market cycles. Why are institutions focusing on bitcoin and ethereum? O’Leary says institutions believe bitcoin and ethereum provide most of the crypto upside and volatility without smaller tokens’ risks. How is quantum computing affecting institutional bitcoin allocations? Concerns that quantum computing could break the chain are causing institutions to cap exposure at around 3%. What happened to smaller crypto coins during the downturn? O’Leary said many smaller coins fell 80–90% and were dumped as capital rotated back to bitcoin and ethereum.
