BULLISH 📈 : Institutional Buying and ETFs Signal Bitcoin Market Recovery

Matt Hougan of Bitwise Asset Management notes that much of the crypto market experienced a downturn last year, although prominent cryptocurrencies like Bitcoin, Ether, and XRP appeared more stable due to strong buying from ETFs and companies. Other tokens fell by 50%-60% without similar support.

Institutional Buying Accelerates

ETF flows and corporate accumulation have shifted market dynamics.
Institutional buying often exceeded new supply, influencing price stability.
Hougan believes the market has bottomed out and is on an upward trajectory, comparing BTC's potential rise to gold's past performance.

A Selective Altcoin Cycle Expected

Investors are becoming more selective, focusing on projects with clear use cases and steady activity.
Projects related to stablecoins, tokenization, and real infrastructure may attract more capital.
Lower-quality projects may receive less interest and remain overlooked.

Bitcoin's price recently fluctuated between 60,000–65,000 before rebounding above 65,000, influenced by geopolitical events affecting trader sentiment.

Transfer From Old Hands To New Buyers

Long-term holders are selling some coins as institutions buy in.
This transition can seem chaotic but doesn't necessarily mean long-term demand is weakening.