Crypto Correction a Buying Opportunity, Says Bitwise CIO
CryptoNewsTerminal Staff05 Aug, 2024
Crypto Correction a Buying Opportunity, Says Bitwise CIO
Matt Hougan, the chief investment officer of cryptocurrency asset manager Bitwise, believes that the recent crypto market sell-off presents an opportunity to buy. In a series of tweets on Sunday, Hougan stated, "While this is just my opinion, from a historical perspective, this weekend's crypto market sell-off looks like a buying opportunity." Hougan, who has managed crypto funds for over six years, said, "I've learned that these kinds of drops create opportunities." Hougan compared the current market conditions to those of March 12, 2020, during the initial outbreak of the COVID-19 pandemic. He recalled that during that time, "all markets – tech stocks, crypto, commodities, etc. – sold off massively." Despite the initial market downturn due to COVID-19, Hougan points out that Bitcoin's fundamentals remained unchanged. It still had a fixed issuance of 21 million coins and was still permissionless, non-sovereign, and scarce. Hougan believes the Federal Reserve's latest dovish pivot resembles the one made during the pandemic. He added that historically, crypto often experiences sell-offs during global economic uncertainties, but tends to trade significantly higher a year later.
