PiCK
Summary
- Matt Hougan, Bitwise's chief investment officer, said the current cryptocurrency market resembles the 2018 bear market.
- He said the downturn could continue for some time due to the impact of the U.S. midterm election results, the Binance situation and tight monetary policy.
- He said that while the exact timing is difficult to predict, a buy-the-dip opportunity could emerge and new technological innovation such as decentralized finance (DeFi) could help drive a market recovery.
Forecast Trend Report by Period
The cryptocurrency market is showing patterns similar to the 2018 bear market, Bitwise Chief Investment Officer Matt Hougan said.
On November 15, Hougan wrote on X, formerly Twitter, that the current crypto market reminds him of mid-2018, when exhausted investors left the market.
The downturn could persist for some time as markets absorb the long-term effects of the U.S. midterm election results, the Binance situation and tight monetary policy, he wrote.
Still, he said a chance to buy at lower prices may emerge later. A major buying opportunity will come at some point, though the exact timing is difficult to predict.
Hougan pointed to new technological innovation as the trigger for a market rebound. He said the innovation that ended the 2018 downturn was decentralized finance, or DeFi, and that a new wave of innovation could again help revive the market.
Uk Jin
