Bitwise Warns Bitcoin Might Slide to $70,000 Amidst Institutional Interest Translation: Bitwise Warns Bitcoin Might Slide to $70,000 Amidst Institutional Interest

The first cryptocurrency is now «closer to the bottom than to the beginning of the pullback,» although there is still a possibility of movement towards the lower segment of the $70,000-$80,000 range. This was stated by Matt Hougan, CIO of Bitwise, during an interview with CNBC.

On Friday, November 21, Bitcoin «plummeted» to around $82,000. At the time of writing, the asset is trading near the $84,000 mark. In the past week, the prices have fallen by more than 12%, and over the month, by 23% (CoinGecko).

Hougan believes that the current sell-off is driven by a clash of short-term fear and long-term confidence. Traders focused on quick profits are reacting to a «global decline in risk appetite, a reduction in trading by firms with crypto treasuries, and the aftermath of the volatility from October 11.»

«However, long-term investors are beginning to appreciate this price range,» the expert noted.

He mentioned that several large institutional players, such as Harvard University’s endowment and the Abu Dhabi Investment Authority, view the Bitcoin correction as a potential entry point.

At the same time, Hougan acknowledged that a drop closer to $70,000 is possible. He identified $84,000 as a key resistance level.

«Cryptocurrencies are falling due to declining global liquidity. Trading in DAT tokens is contracting. We are seeing a trend toward risk aversion,» he stated.

A similar viewpoint was expressed by Eric Johnston, the chief analyst for equities and macroeconomics at Cantor Fitzgerald, during a CNBC broadcast. He noted that the Bitcoin sell-off reflects a broader cycle of risk reduction, which has also impacted the oversaturated AI market.

«We entered this with leverage in the system. We took a substantial hit, significantly reduced risks, and now everything is cleaner,» Johnston highlighted.

A more crucial factor for digital gold, according to the analyst, is the significantly altered ownership structure compared to previous downturns. Large volumes of the asset are now held by institutional players, and regulation has become much clearer, he explained.

«This has reduced overall volatility, although not immediately,» Johnston believes.

Like Hougan, he did not rule out the potential for further correction of the first cryptocurrency, but he also called it a temporary phenomenon.

It is worth noting that the options market does not signal that a bottom has been reached, and traders are leaning towards the risk of Bitcoin dropping below $75,000, as concluded by Glassnode.