According to executives at Bitwise Asset Management, the ongoing slump in Bitcoin is increasingly perceived by institutional investors as a significant long-term buying opportunity. This perspective emerges amid a broader downturn affecting the entire cryptocurrency market.
During an interview with CNBC, Hunter Horsley, co-founder and CEO of Bitwise, noted a substantial surge in trading volumes of Bitcoin exchange-traded funds (ETFs), with activity levels now three to four times higher than the recent 30-day averages. This spike indicates a marked increase in engagement from both buyers and sellers in the market.
Horsley pointed out a noticeable divergence in investor behavior. While long-term holders are exhibiting caution in the face of ongoing volatility, newer institutional players are seizing what they perceive as attractive price levels that were previously considered unattainable. He mentioned a recent discussion with a wealth management firm that revealed a growing eagerness among clients to deploy capital and seek advice on optimal timing for market entry.
These institutional sentiments unfold against a backdrop of significant losses within the crypto sector. Since October 10, the global cryptocurrency market has plummeted by approximately 50%, wiping out around $2.2 trillion in market capitalization. Bitcoin has mirrored this decline, erasing its post-election rally and experiencing a drop of about 10% since the election of Donald Trump.
As of the latest reports, Bitcoin trades near $66,157, reflecting a decrease of 6.3% over the past 24 hours, 20.3% over the last week, and nearly 48% from its peak of $126,080 on October 6.
In light of these circumstances, Matt Hougan, Chief Investment Officer at Bitwise, provided a longer-term outlook. He described the current downturn as a “crypto winter,” a term that suggests a prolonged bear market, characterized by excessive leverage and profit-taking by early investors. Hougan cautioned against viewing the current market conditions as a mere short-term correction.
Furthermore, he drew parallels between the current environment and previous downturns in 2018 and 2022, emphasizing that positive news—such as regulatory advancements or adoption announcements—typically fails to lead to immediate price increases. Instead, such news only tends to affect the market after a complete reset of overall sentiment.
Hougan also discussed how institutional flows have obscured the underlying weakness in retail-focused assets. He highlighted that while assets linked to ETFs or corporate treasuries have not suffered as severely, retail-oriented cryptocurrencies have faced a continued downturn since January 2025. He acknowledged that while institutional inflows have provided some price stability, they have not changed the overall negative trend.
Despite the pressure on prices, Hougan expressed cautious optimism, suggesting that the market may be nearing a turning point. He pointed out that prolonged downturns are often characterized by widespread fear and investor fatigue—conditions he believes are currently present. Although the crypto winter has extended since early 2025, Hougan is hopeful that a recovery may be on the horizon, reinforcing the notion that for institutions willing to endure volatility, this period could represent a significant long-term opportunity.
