Family offices uneasy over crypto exposure after $19B wipeout

Family offices are reassessing their cryptocurrency exposure after around $19bn in digital asset positions were liquidated in October.

The sell-off wiped roughly $1tn from the global crypto market and pushed Bitcoin down about 30%.

The recent dip has hurt sentiment around crypto among family offices.

A UAE-based family office representative said.

The source added that extreme volatility is prompting comparisons with steadier assets such as real estate.

Despite concerns, about 74% of family offices are investing in or exploring crypto, according to a recent survey.

Investor caution contrasts with optimism across parts of the crypto industry heading into 2026.

The United States has introduced more crypto-friendly laws and regulators since Donald Trump returned to office.

Even so, interest appears to be waning, with Google searches for Bitcoin at their lowest since April.

Search data for altcoins such as Ethereum and XRP shows a similar decline in public attention.

Analysts warned that volatility and falling prices could remain a key challenge for family offices next year.

Some forecasts suggest Bitcoin could drop as low as $10,000 in 2026, increasing pressure on investors.

Arthur Hayes remains bullish, predicting Bitcoin could reach $200,000 by March on rising liquidity.

Maelstrom, Hayes’ family office, is reportedly planning a $250m fund targeting mid-sized crypto firms.

At the time of reporting, Bitcoin price was $87,518.64.