Bitwise CIO Reveals What’s Really Behind Bitcoin’s Decline and It’s Not Jane Street
Bitwise CIO Matt Hougan attributes Bitcoin's decline to long-term holders reducing exposure, not market manipulation by firms like Jane Street.Summary
Bitwise Chief Investment Officer (CIO) Matt Hougan dismissed conspiracy theories suggesting firms like Jane Street or Binance are manipulating Bitcoin's price downward. He stated the real reason is more "boring": long-term holders are reducing exposure by selling spot Bitcoin, closing leveraged trades, and writing covered calls, which creates selling pressure.
Hougan cited three main factors driving this selling behavior: the four-year market cycle theory, concerns about quantum computing's future threat to cryptography, and capital rotation from crypto into artificial intelligence (AI) startups. Concerns over quantum computing have led some investors, like Kevin O'Leary and Jefferies' Christopher Wood, to cap or reduce their Bitcoin allocations.
Despite the current downturn, Hougan believes Bitcoin is in the process of bottoming out and anticipates a "classic crypto spring" following this "classic crypto winter." In contrast, on-chain analyst Willy Woo suggests bearish conditions might last until late 2026, with a potential rebound in early 2027, depending on global macro conditions.
(Source：BeInCrypto)