Bitcoin’s recent price volatility has left many retail investors feeling demoralized, with some selling off amid fears that a prolonged crypto winter may be starting. However, Matt Hougan, Chief Investment Officer at Bitwise, argues that the market is not entering another deep bear phase. Instead, he believes the current selling pressure from retail investors is close to exhaustion, suggesting we may be approaching a market bottom.

Hougan notes that while retail participants are showing signs of “extreme despair,” institutional investors remain optimistic and continue to allocate funds into Bitcoin and other digital assets, especially through newly launched ETFs. These institutional buyers are increasingly becoming the driving force in the market, and their sustained demand is helping to stabilize Bitcoin’s price during periods of heightened volatility.

Looking ahead, Hougan is optimistic about Bitcoin’s prospects. He projects that Bitcoin could hit new highs by the end of the year, potentially reaching the $125,000 to $130,000 range, and possibly even as high as $150,000 if current trends persist. This bullish outlook is fueled by the persistent demand from institutions that far exceeds the available Bitcoin supply, as well as the broader adoption of crypto among financial advisors following key regulatory milestones.

Recent surveys indicate that interest among financial advisors and institutional investors is at an all-time high, with many planning to increase their exposure to crypto assets. While regulatory uncertainty remains a hurdle, confidence in the mainstream adoption of crypto is growing, and the ecosystem continues to mature with more investment options and education about digital assets.

In summary, while retail investor sentiment is at its lowest point, the underlying strength from institutional demand suggests that Bitcoin’s downturn may be reaching its end, with the next stage of growth likely to be powered by more strategic and rational capital.