Michael Saylor’s strategy has long been the dominant institutional force behind Bitcoin buying, but that may be changing.
Matt Hogan, chief investment officer at Bitwise, believes the company will play a much smaller role in driving demand for crypto assets in the next market cycle.
The next wave of BTC buyers
In his latest market analysis, Hogan He said The role of this strategy in the Bitcoin market has changed after the company adopted a new STRC framework, which allows it to periodically sell cryptocurrencies to fund dividend obligations. While Hogan acknowledged that he does not expect Strategy to become a major seller of Bitcoin, he said the company can now buy or sell cryptocurrencies depending on market conditions rather than acting as a fixed source of demand.
He added that there is no mechanism that forces the strategy to sell more than a few billion dollars’ worth of Bitcoin annually, and if crypto asset prices recover, the CEO still expects the company to remain a net buyer. However, Hogan said the strategy is unlikely to have the same impact on the market as it had during the previous cycle.
Instead, institutional investors are expected to emerge as the dominant force behind Bitcoin accumulation. Looking at Bitcoin’s history, Hogan said market leadership has repeatedly shifted between different groups of buyers, moving from cypherpunks to Asian investors, then US retail participants, followed by Grayscale Investments Bitcoin Trust and later Strategy.
Bitwise’s CTO now believes the next phase will be led by institutions with much larger capital pools. These include global banks, asset managers, pension funds, endowments, sovereign wealth funds, and financial advisors. According to him, this transformation is already underway.
For example, Morgan Stanley has launched bitcoin-specific ETFs, while Wells Fargo has begun adding bitcoin exposure to model portfolios. He also highlighted that Texas has become the first US state to fund a strategic reserve of Bitcoin, while several sovereign wealth funds and sovereign banks either already own crypto assets or have begun evaluating allocations.
Despite Bitcoin ETF inflows through 2026, Hogan noted that the products have attracted more than $50 billion since their launch in 2024 and are now available on most major financial advisor platforms.
Slowing down the strategy could benefit Bitcoin
A slowdown in Strategy’s Bitcoin purchases wouldn’t have to be bearish for the market, according to Tim Sun, senior researcher at HashKey Group. talking to CryptoPotatosun He said That if the company had to slow down or pause its accumulation, it would help resolve the distortion in supply and demand caused by the financing-based purchasing model.
Instead of relying heavily on strategy purchases and ETF flows, Bitcoin will have the opportunity to create a stronger price floor based on real market demand, leading to what Sun sees as a healthier market structure.
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