Bitwise CIO Clarifies the Current Situation in Bitcoin! “Correction or Crypto Winter?”
As sharp declines in Bitcoin (BTC) and the cryptocurrency market fuel talk of a crypto winter, Bitwise Chief Investment Officer (CIO) Matt Hougan has made some bold statements.
Matt Hougan said that the market downturn is not just a correction, but a severe ‘crypto winter’.
Bitwise CIO Matt Hougan assessed that the current cryptocurrency market is not experiencing a short-term correction, but rather a full-fledged crypto winter.
According to The Block, Hougan stated that the current market shows a pattern very similar to the 2018 and 2022 crypto winters, where the overall market downturn continued despite positive news such as increased cryptocurrency adoption or regulatory improvements.
In a recent note to investors, Hougan stated that the cryptocurrency market entered a full-blown crypto winter in January of last year, but is now closer to its final stages than its beginning.
Hougan noted that Bitcoin has fallen approximately 39% since its peak last October, while Ethereum has lost about 53% of its value during the same period. Many altcoins have experienced even sharper declines.
At this point, he noted that although Bitcoin reached a new peak last October, the downtrend had already begun in January, but the downward trend in this cycle was not sufficiently noticed by many investors.
Hougan concluded by arguing that while it’s difficult to predict the precise timing of the recovery, the market is now closer to a gradual rebound rather than further declines.
Potential catalysts for a recovery include US economic growth, market-structuring bills like the Clarity Act, and the possibility of nation-states adopting Bitcoin.
*This is not investment advice.
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