Matt Hougan, the Chief Investment Officer at Bitwise Asset Management, attributes the recent downturn in Bitcoin to several factors, with the most significant being what he calls the 'four-year cycle.' This cycle is a recurring event in the crypto market that has historically resulted in similar declines.
'People are looking for one thing to blame for the current retracement in Bitcoin. But there is not any one thing to blame,' Hougan shared on 'ETF Edge' during a recent interview. He explained that while Bitcoin is facing various pressures, it's important to recognize that these sell-offs are multifaceted.
Hougan also mentioned that investors are increasingly turning to other appealing investment opportunities, such as gold and artificial intelligence stocks, rather than focusing solely on cryptocurrencies.
'There is some quantum risk. There is fear of [Fed nominee] Kevin Warsh,' he noted, emphasizing that these concerns are often heightened in bear markets.
Reflecting on a previous appearance on 'ETF Edge' last November, Hougan pointed out that Bitcoin had dipped below $90,000 for the first time since April, after hitting its peak of $126,279 in October.