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The recent cryptocurrency market crash represents a unique opportunity, according to Bitwise head of investments Matt Hougan.
“I think it’s a generational opportunity for long-term investors, whether it’s Bitcoin or Ethereum or Solana,” Hougan told CNBC on Tuesday.
Over the past month, the cryptocurrency market has wiped out $1 trillion in value, with Bitcoin falling 29% from its record price of $126,000 hit last month to briefly trade below $90,000 for the first time since April.
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Hougan attributed market volatility to broader concerns about the economy, artificial intelligence valuations and pricing. He said he is optimistic about cryptocurrencies despite these concerns because they are supported by “secular trends decoupled” from these issues, citing the growth of stablecoins, tokenization, prediction markets and digital identity.
“Getting in at these prices, I think, is really almost a gift to long-term investors,” he said. “It’s a tremendous opportunity.”
Meanwhile, according to Hougan, the cryptocurrency market correction is “approaching a bottom.”
“Bitcoin was the first thing to turn around before this broader market pullback,” he said. “It was kind of a canary in the coal mine, signaling that there was some risk in all kinds of asset risks. I think that will be the first thing to hit bottom.”
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During the same segment, Bitmine (NASDAQ: BMNR) chairs Tom Lee said Bitcoin could still reach new highs this year, supported by an expected stock market rally.
Hougan and Lee are not the only analysts to appear optimistic about cryptocurrency prices amid the recent crisis. Chartered standard Global Head of Digital Asset Research Geoffrey Kendrickin a Tuesday note, said the market correction was over. He cited Strategy (NASDAQ:MSTR)’s NAV multiple collapsing to 1.
“I think this is enough to signify that the selloff is over and to finally disprove those who think the halving cycle remains valid,” Kendrick said. “A recovery towards the end of the year is my base case.”
Bitcoin pared some of its losses to recently trade near $92,000.
