Bitwise CIO: Recent crypto crash a temporary adjustment, not a structural change

Matt Hougan, Chief Investment Officer at Bitwise, has characterized the recent flash crash in the cryptocurrency market as a temporary adjustment rather than a structural change. He noted the crash was triggered by President Donald Trump's remarks on tariffs for Chinese imports. Hougan stated that the plunge was driven by the liquidation of excessive leverage, adding that there were no major institutional bankruptcies or technical failures and that investor panic was limited. He also pointed out that DeFi protocols like Uniswap (UNI), Hyperliquid (HYPE), and Aave (AAVE) operated normally, with only some centralized exchanges facing temporary issues. Hougan concluded that the event does not affect the market's core growth drivers—an improving regulatory environment, increasing institutional participation, and competition with traditional finance—and that the mid- to long-term upward trend will resume after this short-term correction.