The chief investment officer at Bitwise Asset Management says a significant wave of capital is building on the sidelines, waiting for Bitcoin (BTC) to hit rock bottom.
In a new Bitcoin for Corporations interview, Matt Hougan says retail and institutional clients of financial advisors are ready to deploy capital and accumulate BTC at the right time.
“They’re mostly chomping at the bit. When we speak to financial advisors who don’t yet have allocations to Bitcoin, but are interested in it, they’re just asking when is the absolute bottom that I should buy in.”
According to Hougan, Bitcoin ETF inflows exploded as BTC dropped to around $60,000 last month, a sign that capital deployment is getting started.
“Once we started to bottom, Bitcoin ETFs had like $2 billion inflows in seven days, which is a lot. That’s because there were people who had capital they were waiting to deploy and just wanted to know when they hit the bottom.”
Hougan adds that the incoming investor base doesn’t have the scar tissue from past Bitcoin drawdowns and has a clearer view of BTC’s four-year cycle and underlying fundamentals.
“If you’re outside of it, it’s much simpler: traditional cyclical opportunity, the government’s still spending too much money, technology’s still becoming more important. Yeah, this is probably a good time to buy.”
According to the Bitwise CIO, he expects the new investor cohort to pour money into BTC in the coming months.
“I think there’s a lot of capital that’s going to come in from that audience in the next six to 12 months.”
Bitcoin is trading at $74,689 at time of publishing.
Photo by Erling Løken Andersen on Unsplash
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