Following the sharp sell-off in the Bitcoin and altcoin markets, Bitwise CIO Matt Hougan made noteworthy comments regarding the recent pullback.
Hougan stated that he spoke with numerous financial advisors throughout the week and that the overall picture remains optimistic. According to Hougan, advisors who have not yet invested see the current decline as an opportunity, while those who bought earlier plan to hold onto their positions.
Hougan stated that this correction reveals an important fact: ETF investors do not control the market. According to the CIO, the decisive force in the crypto market is still “crypto-origin” investors. He said that while the assumption that ETF investors were the marginal buyers of the market has been prominent over the past year, he argued that the real determining factor is the marginal “HODL” investor. Hougan noted that being pro-Bitcoin still carries reputational risk for professional investors in the traditional finance (TradFi) world, and therefore, those who have bought so far are largely investors with high levels of conviction.
Bitcoin’s decline accelerated today, with the price falling to around $67,000 in morning trading. This level marks one of the lowest seen since October 2024. The fragility of crypto assets has once again been revealed amid decreased global risk appetite.
As you may recall, Bitcoin reached an all-time high of over $125,000 late last year. However, in the last four months, the digital asset has lost almost half of its value. The acceleration of exits from risky instruments, particularly technology stocks and crypto assets, has increased selling pressure. The gap between Bitcoin’s performance since its October peak and that of gold has widened significantly. Since February 2025, Bitcoin has lost approximately 32% of its value, while gold has risen 68% during the same period. Investors’ shift towards safe-haven assets has deepened the pressure on the crypto market.
Citi analysts, in a note sent to clients, stated that inflows into Bitcoin ETFs have decreased significantly along with the price drop. It is noted that ETF investments, which played a significant role in Bitcoin’s rise last year, have lost momentum.
Citi also estimates that the average cost for US spot Bitcoin ETF investors is approximately $81,600. The fact that Bitcoin’s current price has fallen below this average indicates that a significant portion of ETF investors have moved into the loss zone.
*This is not investment advice.
