On Friday, Bitcoin (BTC), the leading cryptocurrency, fell further toward $94,500, heightening fears of a broader bear market in the digital asset space. In response, Bitwise CEO Hunter Horsley shared insights suggesting that a bear market has been unfolding over the past six months.
In a post on X (formerly Twitter), Horsley questioned the traditional four-year cycle model, stating it belongs to a “bygone era of crypto.” He pointed to the introduction of Bitcoin ETFs and a pro-crypto stance from the Trump administration as factors that have reshaped the market.
“We’ve entered a new market structure,” Horsley explained, noting shifts in participants and their trading motives. His comments offer hope that the crypto market could soon enter a new bullish phase. “I think there’s a pretty good chance we’ve been in a bear market for almost six months now and are almost through it,” he said, adding that current conditions appear stronger than ever.
Meanwhile, crypto-related stocks also declined on Friday. MicroStrategy (formerly Strategy), known for its Bitcoin treasury strategy, dropped 6%. Other firms like Gemini Space Station and Bullish fell 2%, while Coinbase slipped 1%. Mining company Bitmine Immersion Technologies traded 3% lower.
Yat Siu, co-founder of Animoca Brands, told CNBC that reduced market liquidity has forced investors to sell assets to meet financial needs. “There’s less money in the system,” Siu noted, linking some sell-offs to these shortages.
Siu agreed with Horsley that this cycle may differ from past ones, partly due to increased institutional involvement. He explained that institutional investors don’t necessarily follow the traditional four-year cycle beliefs held by long-term Bitcoin holders.
“People think Bitcoin will drop to $60,000 because of its historical patterns,” Siu said. However, he expects institutions to see downturns as buying opportunities rather than reasons to panic.
At the time of writing, Bitcoin has bounced back to $96,750 but remains down 4% over the past day and week.
Frequently Asked Questions
Of course Here is a list of helpful and clear FAQs about Bitcoins price surge and the market context
Beginner General Questions
1 Whats the big news about Bitcoin right now
Bitcoins price recently hit a high of 94000 which is a significant milestone and indicates a strong upward trend
2 What is a bear market and why is it a big deal that its over
A bear market is a prolonged period when prices are falling and investor sentiment is pessimistic The Bitwise CEO stated that crypto has weathered a sixmonth bear market meaning the period of decline is likely over and a new period of growth may be beginning
3 Why did the price of Bitcoin go up so much
While prices can be volatile this surge is likely due to a combination of factors including increased investor confidence that the worst of the recent downturn is over positive market sentiment and potentially increased institutional investment
4 Is it too late for me to buy Bitcoin now
This is a personal investment decision While the price is high no one can predict the future Its essential to only invest money you can afford to lose and consider speaking with a financial advisor
5 What is the simplest way to buy Bitcoin
The simplest way for most people is through a reputable cryptocurrency exchange or a financial app that offers crypto trading
Advanced MarketFocused Questions
6 What specific factors might have contributed to ending this bear market
Beyond general sentiment factors can include positive regulatory developments the approval of new financial products like Bitcoin ETFs largescale purchases by institutions and a reduction in selling pressure
7 How does a statement from a CEO like the one from Bitwise affect the market
When a respected industry leader makes a definitive statement it can influence market sentiment It gives both retail and institutional investors more confidence which can lead to increased buying and help solidify a positive trend
8 What are the risks of a rapid price increase like this
A rapid surge can lead to a price correction if the rise is based more on hype than fundamental value It can also increase market volatility making large swings in price more likely in the short term