According to Matt Hougan, chief investment officer at Bitwise Asset Management, much of the crypto complex already went through a down cycle last year even though headline coins looked steadier.
He points to heavy buying from ETFs and companies that kept Bitcoin, Ether, and XRP from showing the full brunt of those losses. Some tokens, without that same support, fell hard — in many cases by about 50%–60% — and behaved like past bear phases.
Institutional Buying AcceleratesHougan Says ETF flows and corporate accumulation have shifted the balance. When institutions buy more than new supply, price pressure changes. That is what he highlights.
“We ran the four-year cycle last year,” Hougan said. “We’re already at the bottom. I think we’re coming back up.” “Just like gold eventually entered a parabolic move, Bitcoin will follow suit,” Hougan said. We’re just earlier in that process.” A Selective Altcoin Cycle ExpectedInvestors are getting pickier. The next up-cycle, according to this view, will reward projects with clear use and steady activity, not every token with hype.
Long-term holders are selling some coins while institutions move in. That hand-off can feel messy. A sale wall forms when investors who bought early decide to take profit, and large institutions step in to absorb that supply.
That process has been observed in other asset classes as they mature, and it does not automatically mean demand is weakening over the long run.
Featured image from Unsplash, chart from TradingView
