Hogan considers one of the signs of a local bottom forming to be the lack of a noticeable reaction from the first cryptocurrency to negative news.
"Bad news has stopped affecting the market. The sellers are gone. When bad news stops affecting the market, it means the bottom has been reached," explained the Bitwise top executive.
He named the inflow of funds into spot Bitcoin ETFs as one of the factors that could support the market until the end of the year. Simultaneously, large investors are increasing their share of Bitcoin in portfolios. According to Hogan's estimate, the actual share of the first cryptocurrency for some already reaches 4-5% against the standard benchmark of 1%.
The investment director cited the increase in the number of wallets with a balance of 10,000 $BTC or more as an additional sign of interest in Bitcoin. Over the past eight weeks, their number has grown to 90, updating the six-month high.
Against this background, Hogan believes, the structure of demand for Bitcoin is changing. Previously, corporate investors played a noticeable role in accumulating the first cryptocurrency, with the most famous example being MicroStrategy, the largest publicly traded holder of $BTC. However, the advent of spot ETFs has simplified access to Bitcoin for traditional financial institutions and reduced the advantage of corporate investors, the Bitwise executive is convinced.
The further dynamics of the crypto market will increasingly depend on the growth of demand and the increase in Bitcoin's share in the portfolios of investment funds and large companies, concluded the top manager.
Earlier, Matt Hogan stated that investors are too focused on the short-term price fluctuations of Bitcoin and are trying to determine the minimum level before a new rise.
end-content
