Bitwise CEO Hunter Horsley stated that despite the market turbulence in October and November leading to asset price declines and a collapse in investor sentiment, the long-term fundamentals of the crypto market look promising.
Horsley mentioned that the four-year market cycle has come to an end, replaced by a more mature market structure and altered market dynamics due to the U.S. regulatory shift towards supporting cryptocurrencies. He said in a post on X on Friday:
"I think it’s quite possible that we have been in a bear market for nearly six months and are about to emerge from it. The landscape for cryptocurrencies has never been stronger," Horsley added.
His comments stand in stark contrast to the sentiment among crypto investors, which has fallen to its lowest level since February, as asset prices remain far below the 2024 highs, with fear looming over the market.
At the time of writing, the "Crypto Fear and Greed Index," which measures investor sentiment, was at 16, according to CoinMarketCap data, indicating "extreme fear."
Market analyst and CoinBureau founder Nuc Puckrin noted that although a 25% drop is the lowest adjustment level in this cycle, compared to previous declines of over 30%, investor sentiment is still in shambles.
Bitcoin (BTC) price fell to a six-month low of $94,590 on Friday, prompting analysts to predict further declines to the $86,000 level.
Investor and financial educator Robert Kiyosaki attributed the crypto market slump to low liquidity levels, stating that once the government resorts to printing more money to finance budget deficits, cryptocurrency and precious metal prices will rise.
Liquidity often drives asset prices; high liquidity from low interest rates and monetary supply expansion pushes prices up, while lower liquidity and credit tightening tend to lower asset prices or lead to market stagnation.
Despite the U.S. Federal Reserve beginning to cut interest rates, data from the Chicago Mercantile Exchange (CME) shows that only about 44% of traders expect a rate cut in December.
Related: Nick Szabo: Bitcoin (BTC) is not a "magical anarchy Swiss Army knife"
Original: “Bitwise CEO: Despite Market Rout, Crypto Fundamentals ‘Have Never Been Stronger’”
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