Bitcoin Seen Hitting Bear Market Bottom Amid Resilience to Negative News

Bitcoin has reached its bear market bottom after showing resilience to negative news, according to Matt Hougan, Bitwise CIO. Hougan pointed out that despite a series of bad news reports, including the Coldcard hack and Strategy selling off its BTC holdings, Bitcoin's price remained steady.

The Coldcard hack, which occurred in July, led to the theft of over $100 million in BTC, but did little to dent the asset's price. Instead, investors piled into Bitcoin ETFs as an alternative to self-custody, providing a tailwind for BTC price. Hougan noted that compared to July, Bitcoin ETFs have had a strong showing in August, recording four consecutive days of positive net inflows.

Hougan also cited the sale of 1,690 BTC by Strategy as another example of Bitcoin's resilience. The sale did little to hurt the asset price, confirming Hougan's theory that Bitcoin has hit its bear market bottom. He argued that conditions for a strong end to the year for Bitcoin are aligning, with wealth management platforms tipped to trigger the rally.