Bitwise CEO Projects “Short-Term Dip, Long-Term Rip” For Bitcoin

Bitwise CEO Matt Hougan has downplayed the recent crypto crash, hinting at a long-term recovery for Bitcoin (BTC) and Ethereum (ETH). The crypto downtrend wiped billions off the market cap as traders moved with whales dumping assets. On a positive note, crypto traders have pointed to upward metrics backing a higher price target after the short-term correction.

Matt Hougan Cites Historical Patterns

Despite the crypto crash, Matt Hougan explained that nothing has changed about the market, describing a short-term swing. In a recent X post, he added that the panic after market dips often translates to bullish momentum in the next phase. The crypto red wave increases sell pressure, as most traders, especially retail users, tend to offload assets.

However, whales leverage the opportunity to accumulate at a lower cost, repositioning for the next upward march. This popular buy-the-dip narrative has held sway over the years, as shown by historical charts. In the last ten years, a 2% decline in SPX has resulted in a similar decrease in Bitcoin’s price, with gold often recording a 0.11% surge.

“My colleague @singularity7x did a great study on this. Over the past decade, if you look at all the days SPX has fallen 2% or more, bitcoin is down on average by 2.62%. Gold, by comparison, has risen 0.11% on average, showing it’s a better one-day hedge. But if you look out one year from these days, bitcoin is up 189% on average versus 7% for gold,” Hougan wrote.

Bitcoin price has outperformed gold in recent years amid ongoing debates on both assets. Critics of the digital asset leader say price volatility can wipe out most gains for users tipping gold as a safer store of value. On the other hand, pro-crypto commentators say Bitcoin’s historical outlook shows an astronomical rise.

Financial Analyst Backs Bitcoin

CNBC’s Jim Cramer stated that Bitcoin is great on a portfolio backing its adoption amid present conditions. This sparked diverse reactions as holders look to an anticipated breakout over $115k above the all-time high. The popular “inverse Cramer” narrative was also visible, with users expecting a reversal like in the case of Nvidia.

The AI chip manufacturer stock dipped 17% after Cramer tipped a breakout. The general crypto market is also expected to recover from positive sentiments from the United States market. A rise in altcoin inflow can also spark new optimism for decentralized finance.