Bitwise CIO Declares ‘End of Cycle’ for Bitcoin: Points to That Date for New Bull Season

Bitwise Chief Investment Officer Matt Hougan argued that the recent declines in Bitcoin (BTC) price and the selling pressure on Strategy company’s shares signal the end of the market cycle, asserting that a new bull season is around the corner.

As uncertainty continues in cryptocurrency markets, Bitwise Chief Investment Officer (CIO) Matt Hougan made promising statements regarding Bitcoin (BTC). Hougan stated that the sharp sell-off in Strategy company’s preferred shares under the ticker STRC is a classic indicator that the market bottom is approaching. Emphasizing that such “end-of-cycle” dynamics are painful but necessary, the expert noted that investors should keep an eye on the autumn months.

At the end of June, the Bitcoin price fell below the $60,000 level, testing its lowest points of 2024. According to Hougan, one of the primary reasons for this drop was the turbulence in STRC shares, which Strategy used to finance its Bitcoin purchases. Initially valued at $100, these shares fell to around $75 amid market distrust. However, Strategy’s announcement that it could sell Bitcoin if necessary for dividend payments and its presentation of a new framework somewhat eased liquidity fears in the market.

Institutional Demand and the New Bull Season

Hougan predicts that Strategy will no longer be the only dominant buyer in the market, as institutional giants take over the baton. The interest of major banks like Morgan Stanley and Wells Fargo in Bitcoin ETFs, along with Texas’ strategic reserve plans, are among the strongest signals of this new era. Despite the harsh market conditions dominated by red tones in visuals, the expert believes that the more than $50 billion in cash flowing into ETFs since 2024 will keep the market resilient.

Andre Dragosch, Bitwise’s Head of Research for Europe, shared a similar view, stating that July could be a turning point for the transition from a bear market to a bull regime. Dragosch predicts that the market will bottom out earlier than general expectations, likely before October. Hougan, tracking the fear and greed index and open interest data, reminds that the real rally will begin once the “weak hands” in the market are flushed out.