Matt Hougan, chief investment officer at Bitwise Asset Management, reinforced his optimistic view on cryptocurrency’s long-term trajectory despite a sharp market downturn following the Federal Reserve’s latest announcement.

In a Dec. 19 thread on social media platform X, Hougan stressed that the broader trends remain intact, even as bitcoin fell below $100K. He explained why he doesn’t think the BTC price dip “alters the bullish trend.” Referencing the Fed’s decision to lower its 2024 rate cut projections from four to two, he opined:

Crypto’s in a multi-year bull market. 50bps of projected rate cuts won’t change that.

“Obviously, the big catalyst today was the Fed announcement. The Fed cut rates by 25 basis points as expected, but lowered expectations for next year from 4 cuts to 2 cuts,” the Bitwise CIO noted. “Higher rates are bad for risk assets, and the Fed’s announcement caused a sharp pullback in all risk assets. The S&P 500 fell 3% and the riskier Russell 2000 Small Cap Index fell 4.4%.”

The market reaction was swift, with bitcoin’s drop exacerbated by leveraged trading dynamics. “This being crypto, however, the initial pullback wasn’t the end of the story,” Hougan explained. “Leverage is a fact of life in crypto, and when there are sharp pullbacks in the market, levered positions get stopped out. $600 million of leveraged long positions were blown out in today’s market, exacerbating the pullback.”

Despite the immediate volatility, Hougan rejected the idea of a broader trend reversal, calling the downturn a mere “hiccup.” He pointed out that the Federal Reserve’s influence on cryptocurrency markets has diminished, stating:

The Fed is less relevant to crypto than it has been in the past. Crypto now has internal momentum, and nothing about today’s announcement interrupts the mega-trends.

Hougan outlined several factors driving this long-term momentum, including a “pro-crypto reversal in Washington policy, rising institutional adoption and ETF flows, bitcoin purchases by governments and corporations, and major tech breakthroughs in the programmable blockchain space.” He also highlighted a technical indicator as evidence of resilience, noting: “Bitcoin’s 10-day exponential moving average ($102K) is still above its 20-day exponential moving average ($99K). This simple measure has historically been quite telling on market trends.”

免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。