Bitwise CIO says bad news is priced in, sees potential for more BTC downside

Matt Hougan, Chief Investment Officer (CIO) at Bitwise, believes the bad news is already priced into the market. According to The Block, Hougan explained that the recent sell-off reflects cyclical selling, leverage effects, and broader macro risk-off sentiment rather than a failure within cryptocurrency itself. He noted that gold and silver also saw sharp sell-offs, while U.S. stocks faced pressure from uncertainty over growth, interest rates, and capital spending. While acknowledging large capital outflows, Hougan stressed that the current situation is structurally different from 2022. He pointed out that the 2022 outflows were characterized by crypto-related failures and systemic risk, whereas this time there have been no signs of systemic stress across crypto infrastructure, such as bankruptcies or market infrastructure collapses. He concluded that while there is a possibility Bitcoin's price could fall further, a repeat of the 2022 crash is unlikely, as Bitcoin has matured since the previous cycle.