Bitwise Chief Investment officer Matt Hougan says Bitcoin (CRYPTO: BTC) refusing to react to bad news is one of the clearest signs the crypto winter is ending.
Why Does Bitwise’s Matt Hougan Think Bitcoin’s Bottom Is in?
Hougan told Bloomberg Television that over the past few months, negative headline after negative headline has failed to move Bitcoin lower.
| Bad News Event | Bitcoin’s Reaction |
| Strategy (NASDAQ:MSTR) began selling Bitcoin | Price held flat |
| STRC (NASDAQ:STRC) traded down to $75 | Price held flat |
| Clarity Act passage odds fell from the mid-40s into the teens | Bitcoin kept grinding higher |
| Coldcard hardware wallet hack | Price barely moved |
“One sign that you’re at the bottom of a bear market is when an asset stops responding to bad news,” Hougan said.
“We’re ignoring bad news. We’re maybe over-indexing to good news. I think it’s a sign that we may be at the bottom of this crypto winter,” he added.
What Does Hougan See as Bitcoin’s Next Catalyst?
Hougan said the next marginal buyer is already moving quietly in the background. Large wealth management platforms are approving crypto ETFs one by one, with advisers talking about two to four percent portfolio allocations.
He said this is not FOMO-driven momentum but merit-based adoption from advisers who want long-term exposure to the asset class.
He expects the next bull market to be slower and less volatile than prior cycles but built on a stronger institutional foundation that carries prices higher over a longer period.
Why the Coldcard Hack Is Actually Positive for ETFs?
Hougan said the hack is accelerating a shift toward regulated storage solutions like Bitcoin ETFs, where assets sit with qualified custodians under insurance protections with restrictions on where and how Bitcoin can move.
Bitwise has processed $600 million to $700 million in in-kind transfers into its BITB ETF (NYSE:BITB) over the past year, where investors move existing Bitcoin directly into the ETF on a tax-free basis.
He said most traditional investors will end up holding Bitcoin the same way they hold other assets, through regulated wrappers like ETFs, while cold storage remains an important opt-out mechanism rather than the primary solution for mainstream investors.
Photo via Shutterstock
Login to comment