Family offices, which ramped up cryptocurrency investments in 2025, are now anxious following a $19 billion liquidation event in October that erased $1 trillion from the global market. Bitcoin's price fell 30% in the downturn, prompting comparisons to stabler assets like real estate. Despite bullish predictions from figures like Arthur Hayes, investor interest appears to be waning.
In October 2025, the cryptocurrency market suffered a severe setback when approximately $19 billion in digital asset positions were liquidated, according to a report from Financial News. This event wiped out about $1 trillion from the total market value, with Bitcoin dropping roughly 30%. The volatility has unsettled family offices, many of which increased their crypto exposure significantly during the year.
A representative from a UAE-registered family office expressed the shifting mood: “The recent dip has hurt the sentiment around crypto among family offices.” They added, “Especially when they see extreme volatility, they start comparing it with other investment vehicles in which they are getting stable returns, like real estate.” A BNY Mellon survey from October revealed that 74% of family offices are either investing in or exploring cryptocurrencies, highlighting their prior enthusiasm.
This caution contrasts with optimism in the crypto sector, fueled by U.S. President Donald Trump's policies since taking office in January 2025. Trump has advanced crypto-friendly laws, appointed supportive regulators, and integrated industry lobbyists into government roles, with further reforms anticipated in 2026. Yet, signs of fading interest are evident: Google searches for “Bitcoin” have hit their lowest levels since late April, with similar trends for altcoins like Ethereum and XRP.
Experts warn that persistent price swings and falling values will challenge family offices in 2026. Some analysts predict Bitcoin could plummet another 90% to $10,000. However, not all views are pessimistic. Arthur Hayes, chief investment officer at Maelstrom, forecasts that Federal Reserve liquidity will drive Bitcoin to $200,000 by the end of the next quarter. Maelstrom plans to raise $250 million for a private equity fund focused on mid-sized crypto companies, as reported by Bloomberg in October.
As of the latest data, Bitcoin traded at $88,594, up 0.9% in the past 24 hours, while Ethereum stood at $2,972, down 0.1%.
