Bitcoin Endures 6-Month Bear Market Amidst Price Retreat, Bitwise CEO Suggests New Cycle
Bitcoin Endures 6-Month Bear Market Amidst Price Retreat, Bitwise CEO Suggests New Cycle
Bitcoin (BTC) recently retraced towards the $94,500 mark, prompting Bitwise CEO Hunter Horsley to suggest the cryptocurrency market has been in a bear cycle for the past six months. Horsley believes this cycle is nearing its end, influenced by new market dynamics such as the introduction of Bitcoin ETFs and increased institutional involvement. He argues that the traditional four-year cycle model is outdated. Animoca Brands co-founder Yat Siu echoed these sentiments, highlighting liquidity issues but also noting that institutional investors view downturns as buying opportunities, distinguishing current trends from past cycles. Meanwhile, crypto-linked stocks, including Strategy (formerly MicroStrategy), saw declines. A notable positive development mentioned was the record launch of a spot XRP ETF.
Bitcoin At $94,000, Bitwise CEO Claims Crypto Has Endured A 6-Month Bear Market
Earlier on Friday, Bitcoin (BTC), the leading cryptocurrency in the market, retraced further toward the $94,500 mark, intensifying concerns about a potential bear market for the broader digital asset industry. In light of this, Bitwise CEO Hunter Horsley made some thought-provoking remarks about the current market conditions, suggesting that a bear market cycle has been playing out for the past six months.
New Bullish Phase Ahead For Bitcoin?
In a post shared on social media platform X (formerly Twitter), Horsley emphasized the shift in market dynamics, stating, “We talk about four-year cycles, but the reality is that model is based on a bygone era of crypto.” He pointed out that with the advent of Bitcoin exchange-traded funds (ETFs) and a new pro-crypto administration by President Trump, the landscape has evolved significantly. “We’ve entered a new market structure,” Bitwise’s CEO explained, highlighting the introduction of new players and the changing reasons behind buying and selling behaviors. Horsley’s statement could be met with optimism for investors about the future direction of crypto prices, suggesting that the digital asset ecosystem may soon transition into a new bullish phase. “I think there’s a pretty good chance that we’ve been in a bear market for almost six months now and are almost through it,” he remarked, noting that the current market setup appears stronger than ever.
Related Reading: By The Numbers: First Spot XRP ETF Achieves Record Launch Amid 900 Competitors
Animoca Brands Co-Founder Weighs In
Meanwhile, crypto-linked stocks also experienced declines on Friday. Notably, Strategy (previously MicroStrategy), which focuses on a Bitcoin treasury strategy, saw its shares drop by 6%. Other significant players, including Gemini (GEMI) Space Station and Bullish (BLSH), saw their stock prices decrease by 2%, while Coinbase’s (COIN) shares fell by 1%. Further, digital asset mining firm Bitmine Immersion Technologies traded 3% lower.
Adding to the discourse, Yat Siu, co-founder of the blockchain development firm Animoca Brands, shared insights with CNBC, stating that lack of liquidity in the market has led to investors divesting certain assets to address financial concerns. “There’s less money in the system,” Siu noted, attributing some sell-offs to those shortfalls. Siu echoed Horsley’s perspective, suggesting that this current market cycle may differ from previous ones, particularly due to the influx of institutional investment in digital assets. He explained that institutional investors do not typically follow the longstanding belief system of major Bitcoin holders regarding the four-year price cycle. “People think Bitcoin is going to go down to $60,000 because of the four-year cycle and the token’s history of drops and corrections,” Siu explained. However, he believes that these institutions will view market downturns more as buying opportunities than signals for panic. As of this writing, BTC has recovered the $96,750 line but is still recording losses of 4% over the past 24 hours and seven days.