Bitwise: Market anxiety has peaked, indicating the crypto market is nearing its bottom.
PANews reported on February 7th that, according to CoinDesk, Bitwise stated that the current high level of anxiety in the market may indicate that the market is nearing a bottom. The company pointed out that this anxiety is similar to the sentiment during the bottoms of the cycles in 2018 and 2022, both of which presented "excellent buying opportunities." Bitwise's Chief Investment Officer, Matt Hougan, noted that investors who bought at the 2018 lows achieved returns of approximately 2000%, while those who entered at the 2022 lows saw gains of approximately 300% over three years. He believes that the current disconnect between prices and actual industry progress reflects these cyclical characteristics. Hougan emphasized that the rise of stablecoins, asset tokenization, and trends such as "AI + Finance" indicate that the ecosystem is still maturing and the fundamentals have not changed.
Regarding market shifts, Bitwise believes that crypto bear markets typically end with emotional exhaustion rather than sudden euphoria. Potential upside catalysts include the passage of the Clarity Act, a shift in market risk sentiment, rising expectations of interest rate cuts, and technological breakthroughs at the intersection of AI and crypto. Without a sudden positive shock, the market may "gradually bottom out."
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