As the crypto market plummets, Bitwise has announced a notable valuation. A Bitwise representative claimed that despite selling pressure in recent weeks, Bitcoin is still very close to bottoming out and that the current price is an “opportunity zone for long-term investors.”
According to the analyst, large outflows from Bitcoin ETFs were one of the main drivers of the risk-off movement that began in mid-October. But there is also a common view that returns to these funds will accelerate the recovery. Bitwise points to continued interest from institutional investors and believes that Bitcoin will lead the recovery, just as it has led the decline thus far.
The launch of the Spot Bitcoin ETF is seen as a major institutionalization step for the sector, but analysts argue it has a double-edged effect. More liquidity also allows for faster declines. “New entrants engaged in arbitrage, hedge funds and large portfolio managers are moving in and out of the market. This increases volatility, especially during times of high uncertainty,” he said.
The long-term outlook is different. Bitwise claims that volatility has been declining over a 10-year trend and that Bitcoin is increasingly becoming an institutional asset thanks to new investor profiles entering the market. The company says that asset managers and financial advisors in particular regularly add Bitcoin to their model portfolios, creating stable long-term demand.
It has been reported that corporate government bond purchases, which played an important role in the first half of this year, have slowed down significantly. “This weakening in demand was one of the factors that accelerated October’s decline. However, low prices always present an opportunity for long-term investors,” the report said.
Another focus for the market is the Fed’s interest rate decisions. Although Bitcoin is said to be a “store of value independent of the fiat currency system,” its high correlation with macroeconomic expectations has recently sparked controversy. Bitwise analysts said Bitcoin’s “cyclical advantage” has increased since the pandemic, so it will inevitably be affected by Fed policy in the short term.
The market has largely priced in the possibility of a December interest rate cut. The analyst noted that Bitcoin’s recent bottom at $90,000 and subsequent recovery alongside other risk assets supports this view.
Although Bitwise has not officially announced its 2025 goal, it has shared a clear forecast of $200,000 for 2026. This expectation is based on the prediction that institutional demand will increase exponentially. The firm insists that an influx of institutional investors, ranging from industry funds and university endowments to pension funds and corporate balance sheets, is “inevitable.” Harvard University’s purchase of Bitcoin was cited as an example of this trend.
*This is not investment advice.
