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The Chief Investment Officer of Bitwise Asset Management, Matt Hougan, stated that a considerable portion of the negative sentiment has already been factored into Bitcoin’s current price, and the quotes are expected to rise as the bearish trend diminishes.
According to Hougan, the leading cryptocurrency has experienced its largest two-week correction since the summer of 2022, plummeting over 50% from its peak in October of the previous year. The sell-off of Bitcoin was triggered by a sharp capital flight towards precious metals and stocks of companies associated with artificial intelligence, as well as the exit of investors concerned about significant losses.
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However, there is no systemic stress within the cryptocurrency market, the infrastructure remains operational, and companies holding Bitcoin on their balance sheets have not declared bankruptcy. The pressure on crypto assets is coming from the global economy, emphasized the Bitwise executive.
Investor and trader sentiment has already reached a low point, and even if stagnation persists at current levels, a bullish trend will eventually emerge; patience is all that is required, the analyst concluded.
Previously, Matt Hougan remarked that the downturn occurring in the cryptocurrency market should not be viewed as a short-term correction in the prices of major cryptocurrencies — it is a genuine crypto winter.
