Bitcoin is currently on a dip that has kept it beneath the $100,000, and fearmongers are out in force calling the top and spreading talk of a crypto winter.
However, crypto industry leaders, including Binance founder Changpeng Zhao (CZ) and executives at Bitwise Investments, have pushed back against the growing concerns, framing the current dip as a temporary pullback or the end of a short bear phase, with institutional strength signaling a bottom and renewed upside ahead.
Bitwise executives are unbothered
It is true that Bitcoin’s current level is its lowest since June, but rather than panic, crypto industry leaders like Bitwise Chief Executive Officer Hunter Horsley, Bitwise CIO Matt Hougan and CZ believe there is no danger and that pullbacks are par for the course.
Hougan is even using the current dip as a reason to bet that a bottoming in crypto prices may materialize sooner rather than later. With factors like Wall Street and institutional investor support for Bitcoin, as well as growth in crypto ETFs, he even went as far as saying that a new record high for Bitcoin before the end of the year can not be discounted.
“It’s almost a tale of two markets,” he said on CNBC’s “Crypto World” on Tuesday. “Crypto retail is in max desperation. We’ve seen leverage blowouts. … the market for sort of crypto native retail is just more depressed than I’ve ever seen it.”
Nevertheless, Hougan believes increased crypto trading will continue to shift into an institutionally driven market, a market he believes is still bullish.
“When I go out and speak to institutions or financial advisors, they’re still excited to allocate to an asset class that if you pan back and look over the course of a year, is still delivering very strong returns. So my view of the market is we have to get through this retail flush out. We have to hit bottom from a sentiment perspective. I think we’re very close to that,” he said.
On X, Bitwise CEO Hunter Horsley explained that with the launch of Bitcoin ETFs and the new Trump administration, the crypto industry has entered a new market structure. That means new players, changed dynamics and new motivations behind why people buy and sell.
According to Horsley, this makes the “4 year cycles” model people have depended on for years somewhat outdated. “I think there’s a pretty good chance that we’ve been in a bear market for almost 6 months now and are almost through it,” Horsley added. “The setup for crypto right now has never been stronger.”
Whales have been scooping the dip on BTC
CZ and Ki Young Ju, the founder of CryptoQuant, have expressed similar sentiments. CZ wrote on X, “Every dip, some people think it’s the end of time. Time continues,” while Young Ju reminded his followers that people who bought Bitcoin 6 to 12 months ago have their cost basis hovering around $94,000.
“Personally, I do not think the bear cycle is confirmed unless we lose that level. I would rather wait than jump to conclusions,” he wrote.
Bitcoin is down about 4% this week and currently hovers around $97,000, but while the general market seems to be in a panic, whales have taken advantage of the lower price to accumulate significant holdings.
According to reports, transactions marked the second-largest weekly accumulation by large holders this year. The last time such a thing happened was in March.
During that week, there was unprecedented buying volume as large holders took advantage of spooked investors who were selling out of fear. This time, whales have accumulated more than 45,000 BTC, highlighting renewed conviction among major investors.
Join a premium crypto trading community free for 30 days - normally $100/mo.
