As of February 2025, the cryptocurrency market has shown a clear divergence between institutional and retail investor sentiment. Institutional investors are optimistic about the market outlook and are actively increasing their holdings of mainstream digital assets like Bitcoin and Ethereum. For example, the Wisconsin Investment Board more than doubled its shares in the iShares Bitcoin Trust ETF in Q4 2024, reaching 6 million shares. Meanwhile, retail investor sentiment has turned pessimistic. According to Bitwise’s Chief Investment Officer Matt Hougan, retail sentiment has hit a multi-year low.

During periods of low market sentiment, institutional investors often adopt a contrarian investment strategy, taking advantage of market panic to make strategic moves. Goldman Sachs, a leading global investment bank, significantly increased its positions in Bitcoin and Ethereum ETFs in Q4 2024, showing its long-term confidence in the crypto market. Retail investors can learn from this and consider rational asset allocation during market downturns to achieve asset appreciation.

1. Optimism Among Institutional Investors

In Q4 2024, several large institutions significantly increased their investments in crypto assets. For example, Tudor Investment Corp increased its shares in the iShares Bitcoin Trust ETF from 4.4 million to 8 million, with the market value rising from $159.9 million to $426.9 million. Mubadala Investment Co, a sovereign wealth fund from Abu Dhabi, purchased 8.2 million shares of the same ETF for the first time, valued at $436.9 million. Additionally, a JPMorgan survey showed that the proportion of institutional traders planning to engage in crypto trading rose from 22% in 2024 to 29% in 2025, reflecting growing confidence in the crypto market.

2. Pessimism Among Retail Investors

In contrast to the active moves by institutions, retail investor sentiment remains low. According to the Crypto Fear and Greed Index, the current market sentiment is in a “fear” state, with a score of 44, down 25 points from last month’s “greed” score of 69. This shift is mainly due to the poor performance of altcoins and meme coins, which has dampened retail investor confidence.

1. Historical Success Stories

Goldman Sachs demonstrated remarkable market insight and firm conviction during the 2008 financial crisis. By making precise market judgments and asset allocations, it purchased undervalued assets during market panic, achieving significant profits. This contrarian investment strategy has been a hallmark of Goldman Sachs in complex market environments.

2. Crypto Market Layout

In Q4 2024, Goldman Sachs significantly increased its investments in crypto ETFs. Its holdings in the iShares Bitcoin Trust (IBIT) rose from $600 million in the previous quarter to over $1.5 billion, a 177% increase. In Ethereum ETFs, Goldman Sachs’ investment soared from $22 million to $476 million, a staggering 2,000% increase. These investments reflect Goldman Sachs’ long-term optimism about the crypto market, especially its contrarian investment strategy during market downturns.

1. The Feasibility of Following Strategies

Retail investors can develop their own investment strategies by observing the moves of institutional investors. For example, since institutions actively increase their holdings of Bitcoin and Ethereum ETFs during market downturns, retail investors might consider moderate asset allocation during market adjustments. However, it is important to note that retail investors should base their decisions on their own risk tolerance and investment goals, avoiding blind following.

2. The Advantages of Contrarian Investing

Contrarian investment emphasizes entering the market during periods of low sentiment, buying undervalued assets when others are fearful. This strategy requires investors to have strong psychological resilience and a deep understanding of the market. Given the current situation of low retail sentiment and active institutional layout, contrarian investing might offer potential profit opportunities for retail investors.

The contrarian investment strategy adopted by Goldman Sachs and other institutional investors during market downturns provides valuable lessons for retail investors. In the current crypto market, where sentiment is divided, retail investors should remain rational, learn from institutional investment methods, and seize opportunities in market fluctuations to achieve wealth appreciation. However, investment should be approached with caution, and it is recommended to fully understand market dynamics and one’s own risk tolerance before making decisions.

As of February 2025, the cryptocurrency market has shown a clear divergence between institutional and retail investor sentiment. Institutional investors are optimistic about the market outlook and are actively increasing their holdings of mainstream digital assets like Bitcoin and Ethereum. For example, the Wisconsin Investment Board more than doubled its shares in the iShares Bitcoin Trust ETF in Q4 2024, reaching 6 million shares. Meanwhile, retail investor sentiment has turned pessimistic. According to Bitwise’s Chief Investment Officer Matt Hougan, retail sentiment has hit a multi-year low.

During periods of low market sentiment, institutional investors often adopt a contrarian investment strategy, taking advantage of market panic to make strategic moves. Goldman Sachs, a leading global investment bank, significantly increased its positions in Bitcoin and Ethereum ETFs in Q4 2024, showing its long-term confidence in the crypto market. Retail investors can learn from this and consider rational asset allocation during market downturns to achieve asset appreciation.

1. Optimism Among Institutional Investors

In Q4 2024, several large institutions significantly increased their investments in crypto assets. For example, Tudor Investment Corp increased its shares in the iShares Bitcoin Trust ETF from 4.4 million to 8 million, with the market value rising from $159.9 million to $426.9 million. Mubadala Investment Co, a sovereign wealth fund from Abu Dhabi, purchased 8.2 million shares of the same ETF for the first time, valued at $436.9 million. Additionally, a JPMorgan survey showed that the proportion of institutional traders planning to engage in crypto trading rose from 22% in 2024 to 29% in 2025, reflecting growing confidence in the crypto market.

2. Pessimism Among Retail Investors

In contrast to the active moves by institutions, retail investor sentiment remains low. According to the Crypto Fear and Greed Index, the current market sentiment is in a “fear” state, with a score of 44, down 25 points from last month’s “greed” score of 69. This shift is mainly due to the poor performance of altcoins and meme coins, which has dampened retail investor confidence.

1. Historical Success Stories

Goldman Sachs demonstrated remarkable market insight and firm conviction during the 2008 financial crisis. By making precise market judgments and asset allocations, it purchased undervalued assets during market panic, achieving significant profits. This contrarian investment strategy has been a hallmark of Goldman Sachs in complex market environments.

2. Crypto Market Layout

In Q4 2024, Goldman Sachs significantly increased its investments in crypto ETFs. Its holdings in the iShares Bitcoin Trust (IBIT) rose from $600 million in the previous quarter to over $1.5 billion, a 177% increase. In Ethereum ETFs, Goldman Sachs’ investment soared from $22 million to $476 million, a staggering 2,000% increase. These investments reflect Goldman Sachs’ long-term optimism about the crypto market, especially its contrarian investment strategy during market downturns.

1. The Feasibility of Following Strategies

Retail investors can develop their own investment strategies by observing the moves of institutional investors. For example, since institutions actively increase their holdings of Bitcoin and Ethereum ETFs during market downturns, retail investors might consider moderate asset allocation during market adjustments. However, it is important to note that retail investors should base their decisions on their own risk tolerance and investment goals, avoiding blind following.

2. The Advantages of Contrarian Investing

Contrarian investment emphasizes entering the market during periods of low sentiment, buying undervalued assets when others are fearful. This strategy requires investors to have strong psychological resilience and a deep understanding of the market. Given the current situation of low retail sentiment and active institutional layout, contrarian investing might offer potential profit opportunities for retail investors.

The contrarian investment strategy adopted by Goldman Sachs and other institutional investors during market downturns provides valuable lessons for retail investors. In the current crypto market, where sentiment is divided, retail investors should remain rational, learn from institutional investment methods, and seize opportunities in market fluctuations to achieve wealth appreciation. However, investment should be approached with caution, and it is recommended to fully understand market dynamics and one’s own risk tolerance before making decisions.