At the Wyoming Blockchain Symposium, Caitlin Long, CEO of Custodia Bank, raised important questions about the risks facing both Bitcoin investors and traditional financial institutions.
Caitlin Long's Warning
Caitlin Long, CEO of Custodia Bank, warned Bitcoin investors on August 24, 2025, at the Wyoming Blockchain Symposium about potential risks associated with upcoming bear markets in cryptocurrencies. She highlighted possible liquidity challenges for BTC and ETH due to sell-offs from institutional investors.
Institutional Risks in Crypto
Long pointed out that traditional financial institutions may lack the necessary risk models to handle upcoming market downturns. 'Those kinds of fault tolerances are built into the system because of legacy reasons, where systems were not updating in real time. In crypto, everything has to be real-time, and it's just a different animal. I do worry how those titans of finance will react when the bear market inevitably comes again. I know some who are optimistic and think it won’t come again. I’ve been around since 2012, so I know it’s coming again,' said Caitlin Long.
Lack of Central Bank Support in Crypto Markets
Experts point to the lack of central bank support in crypto markets as a key difference, suggesting that further market innovations and risk management adaptations will be needed. Past bear markets demonstrated how over-leveraged institutions were forced into liquidation, leading to severe market declines.
Caitlin Long's insights emphasize the need for improved risk management mechanisms within traditional financial institutions engaging with cryptocurrency markets to avoid potential systemic issues in the future.
