Market Correction and Shifting Sentiments
The US government shutdown, a prolonged cessation of access to major economic indicators, and increasing uncertainty surrounding the Federal Reserve's interest rate decisions and hawkish statements have all contributed to a sharp correction in Bitcoin (BTC) and other altcoins.
While the recent surge in sudden and sharp corrections in Bitcoin has amplified bearish rhetoric, the CEO of Bitwise has offered a distinct perspective on these market sentiments.
A New Market Paradigm
Bitwise CEO Hunter Horsley has presented a different viewpoint on the prevailing bearish sentiment, suggesting that Bitcoin has been in a bear market for approximately six months and is now nearing its conclusion.
Horsley argued that market dynamics have undergone a radical transformation with the introduction of spot Bitcoin ETFs and the inauguration of the new administration. He contends that Bitcoin's traditional four-year cycle is no longer an accurate or valid model for understanding its current trajectory.
In statements shared via his X account, the prominent CEO indicated that the market is now influenced by entirely different participants, motivations for transactions, and liquidity mechanisms.
Horsley further elaborated that the current market structure is more robust than it has ever been, and Bitcoin maintains a bullish outlook in the medium to long term.
We talk about 4-year cycles. But the reality is that this model is based on the past cycles of cryptocurrencies.
Since the launch of Bitcoin ETFs and new management, we have entered a new market structure: new players, new dynamics, new reasons why people buy and sell.
I think there is a pretty good chance that we have been in a bear market for about 6 months and have almost gotten over it.
The current state of cryptocurrencies has never been stronger.