Bitcoin Ignores Bad News, Signals End of Crypto Winter
Bitwise Chief Investment Officer Matt Hougan believes that Bitcoin's resilience to negative news is a sign that the crypto winter is coming to an end. Over the past few months, despite numerous bad headlines, Bitcoin has failed to react lower.
Hougan told Bloomberg Television that one of the signs of reaching the bottom of a bear market is when an asset stops responding to bad news. He noted that Bitcoin 'is ignoring bad news' and 'maybe over-indexing to good news.'
The Bitwise executive expects the next bull market to be slower and less volatile than prior cycles, but built on a stronger institutional foundation. This will lead to prices rising over a longer period.
Hougan also pointed out that large wealth management platforms are approving crypto ETFs one by one, with advisers discussing allocating two to four percent of their portfolios to the asset class. He believes this is merit-based adoption from advisors who want long-term exposure to Bitcoin.