Bitcoin Expected to End Year 'Significantly Higher' Despite Caution

Bitwise Chief Investment Officer Matt Hougan expects Bitcoin to end the year 'significantly higher'. According to him, bad news is no longer moving the market, and ETF flows are positive. He pointed out that long-term holders are buying, which indicates a bottom in the market.

Hougan also mentioned that institutional exposure to Bitcoin has continued to grow. He said that under a conventional 1% portfolio-allocation framework, institutions have effectively risen their allocation of Bitcoin to between 4% and 5%. This is a significant increase from previous levels.

Data from blockchain analytics platform Santiment shows that the number of wallets holding at least 10,000 BTC has rebounded to a six-month high. The number of such wallets now stands at 90, representing a net increase of six over the past eight weeks or a 7.1% rise. This is a sign that Bitcoin's largest holders are accumulating again.

However, not everyone agrees with Hougan's prediction. Veteran trader Peter Brandt has taken a more cautious view and said that if he were forced to bet on Bitcoin's next move, he would favor a decline. He pointed out the potential head-and-shoulders formation that developed between April and June.