Bitcoin has plunged nearly 50% from its all-time highs, but investor and entrepreneur Kevin O’Leary says the real story goes far beyond price action.
Summary
- Kevin O’Leary remains long Bitcoin but says institutions are increasingly cautious, limiting allocations to around 3% amid concerns over quantum computing risks.
- Bitcoin’s latest 50% correction has reinforced institutional selectivity, with capital concentrating mainly in Bitcoin and Ethereum while smaller tokens continue to be sidelined.
- Technical indicators remain weak, with Bitcoin consolidating near $68,000 as selling pressure persists and key support at $65,000–$60,000 remains in focus.
In a recent post, O’Leary argued that while sharp drawdowns are nothing new for Bitcoin (BTC), institutional behavior is evolving and a new technological threat is entering the conversation: quantum computing.
“Bitcoin just took another brutal correction… but something bigger is happening underneath,” O’Leary wrote. He pointed to the October market meltdown, when Bitcoin tumbled and much of the broader crypto market collapsed 80–90%, with many tokens never recovering.
According to O’Leary, institutions have since become more selective.
“If you want 90% of the upside and volatility in crypto, you only need Bitcoin and Ethereum,” he said, dismissing smaller tokens as “worthless” in the eyes of large capital allocators.
O’Leary maintains he is still long Bitcoin. However, he says institutional investors are hesitating due to rising concerns that future quantum computers could theoretically break cryptographic security underpinning blockchain networks. While such a threat remains speculative and likely years away, he argues it is enough to cap institutional exposure at around 3% allocations until there is greater clarity.
“They’ll stay cautious, they’ll stay disciplined, and they’ll wait,” O’Leary noted, suggesting the next major leg higher may depend as much on technological reassurance as macro conditions.
Bitcoin price analysis: Weak momentum, key levels in focus
Meanwhile, the daily BTC/USDT chart shows Bitcoin trading around $68,100 after a sharp cascade from the mid-$90,000 region earlier this year.
A capitulation wick near the $60,000 zone marked a local bottom, followed by a modest relief bounce. However, price action has since stalled, moving sideways just below the $70,000 psychological level.
The Balance of Power indicator sits at -0.58, signaling sellers retain short-term control. Meanwhile, the Chaikin Money Flow (20) remains slightly negative at -0.06, indicating weak capital inflows and a lack of strong accumulation.
Immediate resistance lies near $70,000–$72,000, where recent candles have repeatedly rejected upside attempts. A break above that zone could open the door toward $75,000.
On the downside, $65,000 stands as initial support, with the $60,000 capitulation low acting as a critical structural floor. A loss of that level would likely intensify bearish pressure.
