‘Bad news is already priced in’: Bitwise CIO sees possible exhaustion as bitcoin logs steepest two-week drop since June 2022

Bitcoin has experienced its steepest two-week decline since June 2022, dropping over 50% from its October high due to selling pressure across spot, derivatives, and ETPs. Bitwise Chief Investment Officer Matt Hougan attributed the downturn to long-term investors selling to front-run the four-year cycle, leverage liquidations, and a rotation of capital toward AI-linked equities and precious metals. Hougan noted that unlike the 2022 crash, there are no signs of forced selling due to insolvency or broken infrastructure, leading him to believe that sentiment is near historic lows where previous bottoms formed, suggesting much of the bad news is priced in. While acknowledging potential further dips, he argued that the asset class has matured, making a 2022-style collapse less likely, concluding that crypto bear markets typically end in exhaustion. Bloomberg analyst Eric Balchunas supported this long-term view, noting both stocks and Bitcoin have historically recovered from sharp drawdowns to hit new all-time highs.

(Source：The Block)