Quite the opposite actually. At least to me it means that institutions actually have been holding crypto reserves, which I'd say gives it a fair amount of legitimacy.
Crypto didn't sell off in a vacuum this time, it sold off with the market at a time when it should be selling off.
I know what you're thinking, but that's not the case. Right now, same as in 2008, institutions are liquidating "store of value" assets to open up more liquidity. That $1.5T in fed repo? Well the fed doesn't take BTC as collateral. And since they don't nobody else is right now. Same with gold. Cash and T-bills are king, so liquidate everything else.
Really this shows that crypto is at least starting to be folded into the main financial world. It actually for once has some degree of beta.
Crypto didn't sell off in a vacuum this time, it sold off with the market at a time when it should be selling off.
I know what you're thinking, but that's not the case. Right now, same as in 2008, institutions are liquidating "store of value" assets to open up more liquidity. That $1.5T in fed repo? Well the fed doesn't take BTC as collateral. And since they don't nobody else is right now. Same with gold. Cash and T-bills are king, so liquidate everything else.
Really this shows that crypto is at least starting to be folded into the main financial world. It actually for once has some degree of beta.
TL;DR: This is good for bitcoin.