Bitcoin has experienced a significant decline, entering a bear market with a year-to-date drop of nearly 30%, according to Bitwise CEO Hunter Horsley in an interview with CNBC. According to ChainCatcher, Horsley attributed the downturn to the broader macroeconomic environment, where investors are selling off liquid assets, including gold, the Nasdaq 100, and Amazon.
Horsley noted that while the crypto sector has faced its own challenges, such as operational disruptions at some offshore exchanges, the current trend is more aligned with the movement of other high-liquidity assets. Long-term holders are feeling uncertain, whereas new institutional investors see this as a 'second chance' to buy at prices they thought they had missed.
He emphasized that the crypto market is still a relatively small asset class, with most investors yet to fully allocate to it. Despite the current volatility, Horsley believes the long-term outlook remains solid, viewing the present situation as a transitional phase.