Hougan Sees Less Severe Crypto Downturn Compared to 2018 and 2022
Bitwise Chief Investment Officer Matt Hougan believes that the current crypto downturn is fundamentally healthier than previous bear markets. Speaking on Tuesday, he argued that the market has stronger infrastructure and a more favorable regulatory environment compared to 2018 and 2022.
Hougan noted that Bitcoin's decline of 49% from its peak near $4.4 trillion in total market capitalization is less severe than the 88% drop seen in 2018. He pointed out that today's market has stablecoins worth over $3 trillion, tokenization markets valued at $200 trillion, and a positive regulatory climate.
According to Glassnode, Bitcoin's recent drop imposed significant psychological pressure on long-term holders, but Alphractal founder Joao Wedson countered that the Net Unrealized Profit/Loss for long-term holders remains in profit. This suggests that the market has not yet reached its lowest point.