Financial institutions are increasing their positions against the trend: Wells Fargo adds $383 million worth of Bitcoin

At the beginning of this month, an important market development drew industry attention—Fidelity, a well-known American bank, announced the completion of a $383 million Bitcoin purchase during a market downturn. This transaction reflects the starkly different strategic choices made by institutional investors and retail investors within the market cycle.

Crypto industry leader CZ reposted the related news on social platform X and made a sharp comment. He pointed out that while retail investors tend to panic and exit the market, institutions like American banks are actively increasing their Bitcoin holdings. This contrarian move demonstrates professional investors’ deep understanding of market cycles.

According to the latest data, Bitcoin’s current price is approximately $88,500. At this price level, the continued accumulation by large financial institutions further confirms their recognition of the long-term value of digital assets. Fidelity’s buying action not only reflects institutional recognition of Bitcoin from traditional financial institutions but also signifies an important shift in Wall Street investment logic.

Market analysts believe that when panic dominates the market, the decision of large banks to increase holdings often signals a turning point in the market cycle. Institutional capital deployment during downturns usually yields substantial returns during subsequent market recovery. This is also why CZ emphasizes that “accumulating during panic sell-offs” remains a timeless investment wisdom applicable to today’s markets—mastering cycles and thinking contrarily are key differences that set professional investors apart from retail investors.