Bitwise CIO: Bitcoin Is Currently in the Capitulation Phase, Price Drop Driven by Long Liquidations Rather Than Market Manipulation Conspiracy
BlockBeats News, February 27th, Bitwise Chief Investment Officer Matt Hougan stated, "Various conspiracy theories abound. It started with an exchange, then Wintermute, then some unknown offshore macro hedge fund, then 'paper Bitcoin,' and today it's Jane Street's turn, which may change to someone else next week."
The true reason for Bitcoin's drop is that a group of people who were previously long on Bitcoin sold their Bitcoin exposure. They sold through the spot market, sold by unwinding leveraged positions, and also reduced exposure by selling call options. They sold because of the 'four-year cycle,' concerns about quantum computing, a desire to invest in AI startups, and various other reasons.
Most of their selling behavior has already been completed, and we are in the process of forming a bottom. The future will still reach new all-time highs. This is a typical crypto winter, which will eventually usher in a typical crypto spring. People always hope to find someone to blame — I understand this sentiment — but reality is often more mundane than conspiracy theories."
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
The Last Time Treasury Yields Hit 6%, Bitcoin Didn't Exist — What Happens If They Get There Again?
Goldman Sachs: AI storage chip demand is underestimated, South Korean stock market still has 80% upside potential
Goldman Sachs Asia-Pacific Chief Equity Strategist Timothy Moe maintains a KOSPI target of 12,000 points, implying an almost 80% increase from the current level. He points out that the market is systematically underestimating the sustainability of the AI storage chip profit cycle. Capital expenditures by US tech giants may exceed $1.2 trillion next year, and the chip shortage triggered by data center expansion will further intensify in 2027. The current KOSPI is trading at only 5.3 times expected earnings, about half of its historical average.
Norwegian sovereign wealth fund may cut $80 billion US Treasury holdings; high-rated mortgage securities expected to become new favorites
Norway's sovereign wealth fund, with a scale of $2.3 trillions, has recommended reducing government bond holdings and reallocating funds towards higher-yielding fixed income assets.
Crypto prices
More
