Institutional buyers ‘nibbling’ as crypto selloff widens, but analysts warn final shakeout may not be done

Following a significant crypto selloff that flushed out over $2 billion in leveraged positions, analysts suggest signs of a market bottom are emerging, even as further downside remains possible. Bitwise CIO Matt Hougan noted a clash between short-term fear and long-term conviction, stating that major allocators like the Harvard endowment are "nibbling" at current prices, viewing the retracement as an entry point. He suggested the market is closer to the bottom than the start of the pullback, though prices could still reach the mid or low $70,000s. Cantor Fitzgerald's Eric Johnston agreed the selloff reflects a broader de-risking cycle, leaving a "cleaner setup" with more institutional ownership and regulatory clarity than in previous cycles. Both analysts see favorable long-term prospects tied to macro conditions like potential Fed rate cuts, but acknowledge that further short-term dips are possible before a durable floor is established.

(Source：The Block)