Wall Street Can’t Control Bitcoin: Custodia CEO Explains Why

• Decentralized Bitcoin ownership restricts Wall Street control, unlike gold held in banks and central vaults.
• On-chain data shows over 70% of BTC sits with long-term holders, reducing daily tradable supply.
• Negative funding rates reflect defensive sentiment as markets wait for confirmation despite cleaner positioning.

Caitlin Long has drawn a sharp line between Bitcoin and gold. 

The Custodia Bank founder argues that Wall Street cannot dominate Bitcoin the way it controlled precious metals. Her reasoning centers on one critical factor: ownership structure.

Long explained that gold’s downfall came from centralized storage. Banks and central banks held the physical metal, making it easy for Wall Street to financialize. 

Bitcoin operates differently. It doesn’t sit in institutional vaults waiting for financial manipulation.

Long-Term Holders Control Most Bitcoin Supply

Approximately 70% of Bitcoin remains in the hands of long-term holders, according to Long. These holders aren’t actively selling or trading their assets. Only a small fraction of Bitcoin changes hands daily.

On-chain data from Glassnode and CoinGlass supports this claim. As of February 2026, roughly 72% of Bitcoin supply qualifies as long-term held. The metric defines long-term holdings as coins unmoved for over 155 days.

This concentrated ownership limits available liquidity. Wall Street cannot simply scoop up massive quantities to dominate the market. There’s no floating supply available for institutional bailouts during market stress.

Bitcoin’s Decentralized Nature Creates Protection

Long emphasized Bitcoin’s fundamental characteristics that prevent centralized control. The cryptocurrency operates on a voluntary, permissionless basis. Users can move Bitcoin completely outside traditional financial systems.

The network even functions without internet connectivity in extreme situations. This capability, including transfer methods like ham radio, reinforces Bitcoin’s independence from conventional infrastructure.

Wall Street can participate in Bitcoin markets. Institutions can buy, trade, and create financial products around the cryptocurrency. However, they cannot control the underlying supply.

Market Sentiment Shows Defensive Positioning

CryptosRus noted a shift in Bitcoin market dynamics. Funding rates have stayed negative for three consecutive days. This means short sellers are paying long position holders, indicating flushed leverage rather than euphoric sentiment.

Momentum remains soft according to the analysis. A CME gap near $84,000 hasn’t filled yet. However, positioning appears cleaner than before. Sentiment has turned defensive, and long positions aren’t crowded anymore.

The account suggested that improved risk-reward ratios often emerge when trader interest wanes. The current setup awaits confirmation before clearer directional moves materialize.

Community Debates Wall Street’s Growing Influence

Bitcoin community members remain divided on institutional involvement. 

Supporters highlight the cryptocurrency’s voluntary participation model. They stress off-grid transferability as proof of resilience against centralized control.

Skeptics point to growing ETF inflows as evidence of emerging Wall Street influence. These competing perspectives reflect ongoing tensions within the crypto space. The debate centers on whether institutional adoption strengthens or threatens Bitcoin’s decentralized ethos.

Long’s core argument maintains that ownership structure provides the ultimate protection. 

Unlike gold, Bitcoin cannot be physically consolidated in bank vaults. This decentralization preserves the cryptocurrency’s resistance to institutional dominance regardless of Wall Street’s participation level.

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