Updated
Updated · Yahoo Finance · Aug 12
Bitwise CIO Sees Bitcoin Near Bottom as $116 Million Hack Fails to Rattle Market
Updated
Updated · Yahoo Finance · Aug 12

Bitwise CIO Sees Bitcoin Near Bottom as $116 Million Hack Fails to Rattle Market

1 articles · Updated · Yahoo Finance · Aug 12

Summary

  • Matt Hougan said Bitcoin may be near the bottom of the crypto winter because a run of negative headlines has failed to trigger the sharp selloffs typical of bear markets.
  • Recent shocks he cited included a $116 million Coldcard exploit, Michael Saylor's company selling Bitcoin reserves, and Clarity Act passage odds dropping from the mid-40s to the teens.
  • Hougan argued the next meaningful source of demand will be large wealth-management platforms, not short-term hype, pointing to advisor-led approvals for Bitwise's BSOL ETF even with the market about 50% below its highs.
  • Bitwise has also processed roughly $600 million to $700 million of tax-free in-kind ETF conversions over the past year, which Hougan said supports keeping most Bitcoin exposure in ETFs and a smaller share in cold storage.
  • He stopped short of calling a definitive bottom, saying the real test is whether Bitcoin keeps absorbing the next wave of bad news and can still finish the year strongly.

Insights

If Bitcoin ignores bad news because institutions are buying, does this mean the era of wild retail crypto rallies is permanently over?
As Wall Street swallows Bitcoin supply through ETFs, will this decentralized currency ultimately become a centralized asset controlled by mega-funds?
Could the massive shift toward regulated Bitcoin ETFs secretly expose investors to hidden tax traps like phantom income?