Bitwise CIO: Analyzing the Factors Behind Bitcoin's Price Volatility

Multifaceted Reasons Behind Bitcoin's Recent Decline

Bitwise Chief Investment Officer Matt Hougan recently noted that Bitcoin's recent price drop isn't due to a single factor, with the four-year cycle being a key downward driver.

Besides cyclical fluctuations, investors have recently favored assets like gold and AI-related stocks over cryptocurrencies, significantly impacting market sentiment.

• The four-year cycle influences market expectations
• Investors are shifting toward gold and AI stocks
• Market anxiety is pressuring prices

Bitcoin's Scarcity Remains Intact

Although Bitcoin's price fell below $61,000, hitting a 16-month low, Hougan stressed that Bitcoin's financial evolution hasn't altered its supply scarcity.

Bitwise currently manages over $15 billion in assets, and while one of its ETFs has underperformed since its October launch, Bitcoin's long-term value remains promising.