The end of the cryptocurrency startup era and why Bitcoin is evolving into institutional investor assets

The relationship between Bitcoin and the cryptocurrency market is fundamentally about to change. Philip Bechaj, CEO of crypto trading firm XBTO, points out that it’s not just about price stagnation but the maturation of the market structure itself. The venture phase of cryptocurrencies has ended, and industry leaders believe that from now on, the asset class will evolve into one led by institutional investors.

As of January 29, 2026, Bitcoin is trading at $88,310, down 0.69% in 24 hours. Similarly, the flagship cryptocurrency Ethereum has fallen to $2,960, a 1.25% decrease over the same period. At first glance, the crypto asset market appears to be sluggish. However, this “calmness” is evidence that the crypto market has transformed from a frontier asset full of volatility into a regulated financial product.

“Cryptocurrencies are not dead” but “mature”: XBTO CEO discusses the major market shift

Bechaj emphasizes that there is an important distinction between Bitcoin and other cryptocurrencies. “There is a difference between Bitcoin and what we call cryptocurrencies,” his statement symbolizes a shift in market perception. As Bitcoin matures, its investment story has become “crystallized.” In other words, it is transitioning from an emerging asset full of uncertainty to a mature asset with predictability.

The former crypto market was characterized by explosive rallies and reflexive volatility. Bechaj refers to this period as the “venture phase.” The era of seeking large returns has passed. As institutional investors become central to the market, what they seek is not raw beta but stability, liquidity, and risk management.

Bitcoin, established as a regulated financial product, is now embedded in corporate balance sheets and absorbed through supply and demand in derivatives markets. As a result, volatility has been compressed, and price movements have become more subdued. This change signals to market participants that the era of crypto ventures has come to an end.

What Bitcoin investors should know: risk management strategies in the era of institutional investors

The end of the crypto venture phase does not mean the investment logic has changed. Instead, it has become clearer that demand remains a key macro factor. With supply fixed and predictable Bitcoin, structural demand from ETFs and institutional investors continues to grow. This supply-demand imbalance supports long-term valuation even if short-term price movements seem sluggish.

However, the places where returns are generated have shifted. During the October 2025 liquidation chain episode, approximately $19 billion in leveraged positions were wiped out across the entire crypto market. This incident shows that institutional activity is now more focused on risk transfer than on pursuing clear directional bets.

According to Bechaj, “Many large investors want exposure to Bitcoin but need to protect themselves from sharp declines,” creating a conflict. In other words, the emergence of institutional investors in the crypto market involves not just capital inflows but also the implementation of more complex risk management strategies.

The fragmented structure of the crypto market tends to amplify these distortions. When price gaps occur due to liquidations, active managers step in as liquidity providers, creating opportunities to extract alpha from the market’s microstructure. Meanwhile, Bitcoin’s long-term fundamentals remain healthy.

Gold and Bitcoin capital rotation: what to buy in the end of the crypto era

An intriguing phenomenon is unfolding simultaneously. Gold and silver continue to hit record highs amid increasing macroeconomic uncertainty. The London Bullion Market Association (LBMA)’s 2026 forecast survey shows the most bullish outlook of this century. Analysts predict gold prices will rise about 40% from 2025, and silver will nearly double.

Among Bitcoin investors, there is an expectation that capital will shift from Bitcoin to gold as macroeconomic stress intensifies. However, this is seen as a cyclical rather than a fundamental change. Bechaj points out that gold is “the safe haven currency of last resort when things go wrong,” especially for governments and central banks with limited liquidity and large capital movements.

In the end of the crypto era, investors should focus not on absolute prices but on relative valuation. The ratio of Bitcoin to gold will become a more important indicator than superficial performance. Gold first absorbs urgency and scale, while Bitcoin is increasingly treated as a balance sheet asset by institutional investors, with its value proposition unfolding over the long term.

Indicators confirming the end of the crypto venture era

Bechaj also clearly states the conditions under which his hypothesis could be invalidated. To assess future developments in the crypto market, attention should be paid to the following indicators:

If Bitcoin is traded as a high-beta tech asset during inflation or crises, the story of digital gold will fail. Persistent ETF outflows during a typical 20% correction would signal weak confidence among institutional investors. Additionally, if prices rise while on-chain activity and stablecoin usage collapse, it would suggest a speculative, rather than practical, institutional era.

With the threat of Japanese bond sell-offs and re-escalation of US tariffs, global risk aversion is spreading. The Nikkei 225 declined by 1.28%, and markets across Asia-Pacific also fell. Derivative data indicates traders are prioritizing short positions over active spot selling. Whether Bitcoin can maintain stability in this environment will determine the next cycle’s phase.

As the crypto venture era ends and the institutional investor era takes hold, the market is testing whether Bitcoin’s relative underperformance signals maturity or misvaluation. While gold absorbs macroeconomic stress, long-term structural demand for Bitcoin remains robust. This interaction is key to shaping investment strategies in the end of the crypto era.