Bitcoin Price Unlikely To See A 77% Drawdown Again – Bitwise CIO
The Bitcoin worth has been on one of its worst runs in recent times, falling by double digits over the previous week. While the premier cryptocurrency appears to be recovering effectively over the previous day, the single-day 14% correction — on Thursday, February 5 — is an prevalence that has instilled concern out there, and rightly so. In their newest report, a famend pundit has tried to give you solutions to the questions at the moment swirling across the Bitcoin worth.
Crypto Bear Markets End In Exhaustion, Not Excitement — Bitwise CIO
On Friday, February 6, Bitwise’s Chief Investment Officer, Matt Hougan, answered questions the concerning the present construction and outlook for the Bitcoin worth. The senior govt wrote about why the market is down, if it could fall additional, and what would assist the BTC worth attain a backside.
Hougan began by noting that there’s by no means a single cause why the crypto market fell, as a number of elements are sometimes at play. In this newest correction, the Bitwise CIO listed about six contributing elements, together with front-running the four-year cycle, the lack of “consideration investor” to AI and metals, and the notorious October 10 liquidation occasion.
It is essential to notice that the market and the Bitcoin worth motion has not been the identical for the reason that important leveraged blowout on October 10, 2025. This historic liquidation occasion got here off the again of United States President Donald Trump asserting a shock 100% tariff on all Chinese items.
Other elements highlighted within the Bitwise’s report embody considerations round Kevin Warsh as Federal Reserve chair, quantum computing fears, and macro risk-off sentiment. Notably, it might be mentioned that Bitcoin and the crypto market usually are not the one victims of this sentiment shift, as mineral and inventory markets have additionally seen important declines.
Hougan talked about the excellent news is that the sell-off indicators seems to be displaying indicators of exhaustion.
The Bitwise CIO wrote:
According to onchain information, long-term holders have stopped promoting aggressively, and a few are starting to nibble across the edges. Open curiosity on bitcoin derivatives exchanges has fallen to ranges final seen in 2024.
Hougan went on to say that, if historical past is to go by, it’s attainable for the Bitcoin worth to fall additional within the present construction. However, the funding skilled additionally believes that premier cryptocurrency is a extra mature asset, and is much less prone to see a 77% correction as previously.
While he couldn’t pinpoint the precise time the Bitcoin worth would attain a backside, the Bitwise CIO revealed that the catalyst that might flip issues round is solely time. “Crypto bear markets have a tendency to finish in exhaustion, not pleasure,” Hougan concluded.
Bitcoin Price At A Glance
As of this writing, the value of BTC stands at round $67,834, reflecting an over 4% bounce previously 24 hours.
