Bitcoin Flash Crash a 'Temporary Event' Says Bitwise CIO Hougan
Bitwise CIO Matt Hougan dismissed last week's $20 billion crypto market flash crash as temporary, attributing it to leverage rather than fundamentals. The turmoil was triggered by President Trump's post on Truth Social announcing 100% tariffs on Chinese imports. Bitcoin plummeted 15%, while Ethereum dropped over 20% and SOL plunged 40%. However, the price recovered quickly to around $115,000 after Trump seemingly attempted to de-escalate tensions.
Hougan noted that losses appeared contained to individual traders rather than large institutions or service providers. Firms experienced losses but appear to have all survived, which helped the market recover quickly. On the technology front, Hougan said blockchains themselves performed well under stress, with decentralized platforms like Uniswap and Aave running smoothly.
Despite short-term jitters in the market, Hougan believes the long-term drivers of crypto's growth remain intact. He expects the market to 'catch its breath' and renew its attention on fundamentals, allowing the bull market to continue.