Maintaining Resilience Amid Market Turbulence: Mainstream Coins and Diversified Investment Prove Crucial

Recent escalating tensions between the US and China have triggered sharp declines in financial markets across both regions. On 10 October 2025, following the US announcement of 100% tariffs on Chinese imports, global assets experienced widespread plummeting, with the cryptocurrency market enduring what is claimed to be the largest liquidation event in history. Within a mere three hours, forced liquidations across the entire market exceeded US$19 billion, inflicting heavy losses on nearly 1.6 million investors. Certain meme coins plummeted by 90-100% in a single day, instantly wiping out the leveraged positions of many investors. However, Bitcoin and Ethereum – the largest cryptocurrencies by market capitalisation – declined by only approximately 13-17%, demonstrating their resilience and liquidity advantages.[1] This positions them as the preferred allocation targets for institutional and long-term investors.

Emerging Trends in Family Office Asset Allocation

According to Goldman Sachs' 2025 Family Office Investment Insights Report, family offices in the Asia-Pacific region continue to increase their investment weightings in niche asset classes, including art, cryptocurrency/blockchain, sports, and wineries. Compared to traditional equities and bonds, they place greater emphasis on diversification and structural growth. By 2025, cryptocurrency has emerged as a key investment focus, with approximately 33% of family offices allocating capital to this sector – a 7% increase from 26% in 2023. Family offices in the Asia-Pacific region demonstrate particular vigour, with allocations reaching 35%.[2] Taking Asian family offices—particularly those in Hong Kong, Singapore, and mainland China—as an example, cryptocurrency is increasingly becoming an essential component of asset allocation. Some institutions even plan to further increase their exposure to capture long-term structural growth.

Investing in Bitcoin and Ether is the preferred choice

The latest market turbulence has once again demonstrated that Bitcoin and Ether represent the most resilient options among crypto assets. Smaller cryptocurrencies (meme coins) commonly face liquidity crises and risks of prices plummeting to zero during highly volatile market conditions. In contrast, Bitcoin and Ether, bolstered by high liquidity and institutional participation, experience relatively limited declines, presenting lower risk for investors.

Significant Increase in Institutional Recognition

In October 2025, Morgan Stanley fully opened access for all clients in the United States (including retirement accounts) to invest in cryptocurrency investment products, namely US-listed cryptocurrency ETFs and specific cryptocurrency funds. Although the recommended initial allocation for cryptocurrencies is capped at 4%, this still underscores their significance for portfolio diversification.[3] Institutional allocation to crypto is trending up to the range from 2% to 7.5%.[4]

The expansion of cryptocurrency-related investments by investment banks and the remarkable growth in assets under management for crypto ETF  issuers signify a significant increase in participation and recognition from institutional investors and family offices beyond high-net-worth clients. Furthermore, retail investors can now more conveniently allocate virtual assets through ETFs.

Medium-to-Long-Term Strategy: Bitcoin and Ether Remain Indispensable

For medium-to-long-term investments, we maintain that virtual assets remain an indispensable component of investment portfolios. Diversifying holdings, selecting more liquid cryptocurrencies such as Bitcoin or Ether, and maintaining spot positions rather than engaging in contract trading can effectively mitigate counterparty risk during extreme market conditions and provide resilience against volatility.

As regulatory frameworks for virtual assets mature globally and leading asset managers increasingly participate in virtual asset ETFs, long-term allocation to Bitcoin and Ether remains a sustainable asset allocation trend.

[1] Source: PANews, data as of 11 October 2025.

[2] Source: Goldman Sachs, October 2025.

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