BitWise Cio Matt Hougan dealt with the constant disruption of the ongoing encryption market, giving an insight into historical patterns and possible recovery trends.
His remarks come at a time when Bitcoin, Ethereum and other leading cryptocurrencies are facing sharp declines, which is widespread anxiety. Hougan’s analysis highlights both the short -term market behavior and long -term recovery capabilities, providing a perspective on historical data.
Crossing market: Bitcoin and Ethereum Decline in lead
The global encryption market suffered a decrease, and the bitcoin, Ethereum, and other major encrypted currencies offered great losses.
Bitcoin has been trading less than $ 100,000, a decrease of 2.95 % in the past 24 hours, while ETHEREUM has decreased by 5.11 % for trade at 3,147.62 dollars. The price of XRP and Solana also follows the declining trend with losses of 2.72 % and 6.03 %, respectively.
The total ceiling of the encryption market also decreased from $ 3.61 trillion to $ 3.49 trillion. This represents a 3 % decrease in only 24 hours, which sparked Cio BitWise comments. This sale is attributed to the general fluctuations in the financial market, where the risky assets such as stocks were under pressure.
BitWise Cio Matt Hougan is expected to restore bitcoin
Bitlise Cio Matt Hougan recall the relationship between large sales in traditional markets and encrypted currencies. In Hougan analysis, Bitcoin usually decreases in conjunction with the S&P 500 index during important market accidents.
“Historically, Bitcoin tends to decline while the market decline but tends to recover well in the long run,” said Cio Matt Hougan. He pointed out a research that when you lose the S&P 500 % in one day, the Bitcoin loses an average of 2.62 %. However, after such events, the future profitability of the Bitcoin was impressive with revenue with an average of 189 % per year.
People always panic around the connections in the days when the market decreases and also sells encryption. But history suggests: a short -term decline, Rip in the long run.
my colleague @singularity7x A wonderful study on this. Over the past decade, if you look at all the days when SPX decreased by 2 % or more, …
– Matt_hougan January 27, 2025
The data indicates that gold, which is often a hedge, behaves differently in these periods and increases 0.11 % on average on such days. Hougan agreed to this, but he indicated that in the long run Bitcoin has always wore and provided higher returns.
Increased signs of mixed stablecoin activity
In conjunction with CIO BitWise data, the data indicates that Stablecoin deposits were at a height, especially USDC, which increased sharply on January 20. This happened at the same time with the opening of former US President Donald Trump, who attracted speculation policies that can prefer cryptocurrencies in the United States.
However, although USDC has become more dominant, the total purchase pressure, especially from American investors, did not pick up.
The Coinbase premium decreased in the negative area, pointing to the poor demand for bitcoin in the American consumer market. This means that, even with the appeal of Trading Stablecoin, investors are still cautious due to the prevailing conditions.
Experts expect an extended unification before healing
Promising analysts issued their predictions about the future of bitcoin and the rest of the cryptocurrency market, with many expect an extended period of unification. According to the latest report issued by Cryptoquant, the price of bitcoin will not wear any time soon in line with Robert Keusaki’s prediction.
QCP Capital also presented a cautious tone and said that the Bitcoin Rally may need to be confirmed by the strategic reserve or the national stock. Currently, options market shows moderate positive expectations until March, and important events such as FOMC will contribute to more changes in volatility.
However, Cio Matt Hougan is still positive about the long -term digital currency. “I cannot say that something very important has happened to the encryption world today,” he pointed out, which means that the recession today may be a short -term volatility in the market.
Kelvin Monin Murithi
Kelvin is a distinguished writer who has experience in encryption and financing, holding a Bachelor’s degree in Actura Sciences. It is famous for its careful analysis and insightful content.
Responsibility: Is market research before investing in encrypted currencies? The author or post does not bear any responsibility for your personal financial loss.
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