Family offices are growing concerned about their cryptocurrency investments after roughly $19 billion in digital asset positions were liquidated in October, according to a report from Financial News.
The dip shaved about $1 trillion off the global crypto market’s total value and sent Bitcoin’s price crashing by about 30%.
“The recent dip has hurt the sentiment around crypto among family offices,” a representative of a UAE-registered family office told Financial News.
“Especially when they see extreme volatility, they start comparing it with other investment vehicles in which they are getting stable returns, like real estate.”
About 74% of family offices are investing in or exploring cryptocurrencies, according to a BNY Mellon survey from October.
The bearishness among investors grows in contrast to the palpable giddiness among many in the crypto industry, which bets on a favourable environment in 2026.
Since Donald Trump took office in January, the US president has pushed through new crypto laws, appointed industry-friendly regulators, and added sector lobbyists into key government roles — and more legislative overhauls are on the horizon.
Despite this arguably bullish backdrop, investors are losing interest in crypto.
Google searches for “Bitcoin” are at their lowest point since the end of April. Google data about altcoins, such as Ethereum and XRP, paint a similar picture.
It is against this mise-en-scène that family offices now seem increasingly concerned about investing in digital assets.
The free-falling prices, coupled with market volatility, will continue to be a major challenge in 2026, experts told Financial News.
Some market analysts expect Bitcoin’s price to fall another 90% to $10,000 in 2026, likely putting even more pressure on family offices.
To be sure, not everyone is bearish.
Arthur Hayes, chief investment officer at family office Maelstrom, argues that an influx of liquidity from the Federal Reserve will push Bitcoin’s price to $200,000 by the end of the next quarter.
Maelstrom is planning to raise $250 million for a private equity fund targeting medium-sized crypto firms, Bloomberg reported in October.
