Bitcoin Ignores Bad News as Crypto Winter Signs Fading

Bitwise Chief Investment Officer Matt Hougan believes that Bitcoin's refusal to react to bad news is a sign that the cryptocurrency winter is ending. Over the past few months, numerous negative headlines have failed to move Bitcoin lower.

Hougan pointed out several instances where expected price drops did not occur, including when Strategy (NASDAQ:MSTR) began selling Bitcoin and STRC traded down to $75, both of which saw Bitcoin prices hold flat.

'One sign that you're at the bottom of a bear market is when an asset stops responding to bad news,' Hougan said. 'We're ignoring bad news. We're maybe over-indexing to good news. I think it's a sign that we may be at the bottom of this crypto winter.'

Hougan also mentioned that large wealth management platforms are approving crypto ETFs, with advisers talking about two to four percent portfolio allocations. He expects the next bull market to be slower and less volatile than prior cycles but built on a stronger institutional foundation.