Bitcoin’s recent rally is being driven by recovering market liquidity and growing institutional demand, rather than geopolitical events, according to John D’Agostino, Coinbase’s head of institutional strategy. D’Agostino noted that market makers are rebuilding positions after a liquidity event, with risk parameters expanding as they re-enter the market. Retail sentiment is catching up to the institutional momentum, reflecting a broader shift in market dynamics.
On institutional adoption, D’Agostino said no major institution working on crypto strategies pulled back despite Bitcoin’s 6% decline in 2025. He added that few, if any, large companies lack an AI and blockchain strategy, or at least consider one. Regulatory momentum has accelerated institutional timelines rather than slowed them.
He pointed to expanding use cases, including proposals allowing Bitcoin as mortgage collateral and partnerships enabling spending at thousands of vendors. Regarding public skepticism, senior institutional leaders no longer openly doubt Bitcoin’s viability, and many partner-level executives would not claim Bitcoin is going to zero.
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