Bitwise: Market anxiety reaches its peak, indicating that the crypto market is approaching the bottom

PANews February 7 News, according to CoinDesk, Bitwise stated that the current high anxiety in the market may indicate that the market is approaching the bottom. The company pointed out that this sense of anxiety is similar to the sentiment at the bottoms of the 2018 and 2022 cycles, both of which turned out to be “excellent buying opportunities.” Bitwise Chief Investment Officer Matt Hougan noted that investors who bought at the lows in 2018 saw returns of about 2000%, while those who entered at the 2022 lows experienced an increase of approximately 300% over more than three years. He believes that the disconnect between current prices and actual industry progress echoes these cyclical characteristics. Hougan emphasized that the rise of stablecoins, asset tokenization, and trends like “AI + Finance” indicate that the ecosystem is still maturing, and the fundamentals have not changed.

Regarding market turning points, Bitwise believes that crypto bear markets usually end with exhausted sentiment rather than sudden excitement. Potential bullish catalysts include the passage of the “Clear Bill,” a shift in market risk sentiment, rising expectations of rate cuts, and technological breakthroughs in the intersection of AI and crypto. Without a sudden positive shock, the market may “gradually bottom out.”