Funds interviewed by The Funding are raising cash, trimming directional bets and weighing risks from Strategy’s debt raising to U.S. policy and macro liquidity.
Bitcoin could face further downside before finding a durable floor, based on interviews with crypto fund investors cited by The Block. Finality Capital said it sees a “true bottom” forming in late Q3 or early Q4, while Hypersphere Ventures said better opportunities are emerging in AI, aerospace, health tech and defense tech rather than crypto at current levels. The feedback points to a more defensive posture across funds, with many holding more cash and cutting directional exposure rather than aggressively buying the dip. Even so, some long-term investors still view the selloff as a buying opportunity. Risks investors are monitoring include Strategy’s debt raising, quantum computing, potential rate cuts, broader liquidity conditions, geopolitics and progress on the Clarity Act.