The multibillion-dollar crypto asset management company has cited several reasons for Bitcoin’s sudden drop, but cited the “four-year cycle” as the biggest factor.
According to Matt Hogan, chief investment officer at Bitwise Asset Management, this has happened three other times in the crypto market.
“People are looking for just one cause for Bitcoin’s current retracement, but there’s more than one place to blame,” he said Monday on ETF Edge.
Hogan argues that investors are preferring other popular investments, including gold and artificial intelligence stocks, over cryptocurrencies.
“There is some quantum risk. There are concerns.” [Fed nominee] “In a bear market, all of this is amplified,” said Kevin Warsh.
When he joined ETF Edge last November, Bitcoin was falling below the $90,000 level for the first time since April. In October, it hit an all-time high of $126,279.
Confusion over virtual currency ETFs?
But Hogan says Bitcoin’s decline shouldn’t ultimately prevent the rise of crypto-focused exchange-traded funds (ETFs). Hogan believes that a “self-fulfilling prophecy” currently rules the crypto market.
“There’s good news beneath the surface, it’s just been slow to materialize, so I don’t think this kind of financialization of Bitcoin will fundamentally change the scarcity debate,” Hogan said. “It may change the dynamics of intraday movements and short-term trading, but it doesn’t change certain fundamental facts that there are only 21 million Bitcoins. All demand for derivatives ultimately has to go to the spot market.”
His company has over $15 billion in assets under management and is heavily involved in crypto ETFs.
On October 28, the company launched the Bitwise Solana Staking ETF, which tracks the price of the Solana cryptocurrency. The fund is down about 57% since its launch. So far this year, the cryptocurrency has fallen more than 30%.
Meanwhile, Bitcoin fell below $61,000 last Thursday, its lowest level in nearly 16 months.
