The drop $BTC below $70,000 is perceived very differently by old holders and new investors. The former feel uncertain, while the latter see it as a 'chance,' said Bitwise CEO Hunter Horsley in an interview with CNBC.
According to the top manager, in the current situation, institutional players 'see prices that they thought they had missed forever.'
Horsley acknowledged that the recent drop in the crypto market occurred at an unusual time, considering the efforts to ensure regulatory clarity and growing interest from major participants.
Currently, Bitcoin is in a bear market and is 'under the influence' of other macro assets, as investors 'sell everything that has liquidity,' noted the CEO.
At the same time, the demand for the first cryptocurrency remains high. According to Horsley, during the drop below $77,000, Bitwise clients directed a net $100 million into crypto instruments.
“Volumes are very large, there are sellers and buyers,” he added.
Another perspective
CryptoQuant analysts indicated that digital gold is trading about 50% below its historical maximum.
Experts allowed for a deeper pullback (by 70-80% from the price record). However, the main risk in the current situation is the timing of capitulation, not the asset price, clarified the company.
“It is important not only how low Bitcoin will fall but also how long it will stay at these values,” emphasized CryptoQuant.
MN Trading founder Michael van de Poppe stated that the current ratio of profitable to loss-making supply of the asset also signals the end of the bear market.
According to his analysis, the indicator reached levels observed before the ends of prolonged corrections in 2018 and 2022.
“I don’t think we will see further declines. A slight consolidation is quite likely, but the market will find a lower boundary at higher levels. Smart people are buying now. The foolish are leaving,” summarized van de Poppe.
Let’s remember, Bullish CEO Tom Farley allowed for an increase in the number of acquisitions in the crypto industry.