Bitcoin Bottoming Out as Institutional Capital Drives Next Bull Market

Bitcoin's market bottom may be forming, according to Bitwise Chief Investment Officer Matt Hougan. He attributes this view to several indicators, including a collapse in leverage across crypto markets and declining funding rates.

Hougan describes the current market as a 'Great Reset' and notes that Bitcoin has remained stable despite negative headlines. The most telling signal is when markets stop reacting to bad news, he said.

Unlike previous cycles, Hougan expects the next bull market to be driven by institutional capital entering digital assets through wealth management platforms rather than retail speculation. He cites firms like Wells Fargo, UBS, and Merrill Lynch expanding their crypto offerings as evidence of this trend.

Hougan predicts that Bitcoin could reach $250,000 to $400,000 during the next bull market, with growing allocations from financial advisors, family offices, and institutional investors being key factors. He also believes BTC remains on a long-term path toward $1 million, although percentage gains may moderate as the asset matures.