Matt Hougan, Chief Investment Officer of Bitwise, assessed the prospects for the first cryptocurrency by the end of this year. The top manager believes that a significant increase in the price of bitcoin is possible relative to current market levels. Hougan called the lack of a noticeable reaction of the asset to negative news a sign of the formation of a bottom. Bad news has stopped noticeably influencing the behavior of participants in the open market. Sellers are gradually withdrawing from the market after a long period of active price declines. The Bitwise top manager considers the inflow of funds into spot bitcoin funds to be an important support factor. Large investors are simultaneously increasing the share of the first cryptocurrency in their portfolios. The actual share of bitcoin in some funds has already reached five percent. This figure significantly exceeds the standard benchmark of one percent for portfolios.

The investment director called the increase in the number of large wallets an additional sign of interest. The number of addresses with a balance of ten thousand bitcoins has grown to ninety. This indicator has updated the six-month high in just the last eight weeks. The structure of demand for the first cryptocurrency is gradually changing on the open market. Corporate investors have previously played a prominent role in the accumulation of digital assets. Strategy has become the most famous example of such a corporate bitcoin holder. The emergence of spot exchange-traded funds has significantly simplified access to the asset for institutions. Traditional financial institutions have received a convenient tool for working with cryptocurrency. This circumstance has reduced the previous advantage of specialized corporate investors in the market.

The further dynamics of the cryptocurrency market will increasingly depend on the growth of demand. Increasing the share of bitcoin in investment fund portfolios will be a key factor. Large companies will also continue to increase their reserves of the first cryptocurrency. Matt Hougan previously noted the excessive focus of investors on short-term price fluctuations. Market participants are trying to determine the minimum level before starting a new growth. Professional asset managers maintain a positive outlook on bitcoin's long-term prospects. Institutional players consider the first cryptocurrency as an important element of diversification. The technological features of the network continue to attract the attention of major global investors. The digital asset market is gradually moving to a new phase of its development.

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The material has been prepared solely for informational purposes and does not constitute financial advice or recommendation.