Bitwise CIO dismisses Jane Street rumors, blames long-holder selling for BTC drop

Bitwise Chief Investment Officer (CIO) Matt Hougan has dismissed rumors blaming specific firms for Bitcoin's recent price decline, arguing on X that the real cause is long-position holders reducing their exposure. He called conspiracy theories targeting companies like Jane Street, Binance, and Wintermute "wild," noting that the subject of such speculation changes weekly. According to Hougan, the downward pressure on prices stems from long-term investors decreasing their Bitcoin exposure through spot sales, the liquidation of leveraged positions, and the sale of covered calls. He suggested several potential reasons for this sell-off, including the typical four-year market cycle, concerns about quantum computing, and a shift of capital toward artificial intelligence (AI) startups.