- Bitcoin’s downturn may have lasted six months, according to Bitwise CEO Hunter Horsley.
- Liquidity shortages pushed some investors to sell, Animoca’s Yat Siu told CNBC.
- Institutional investors view downturns differently, shifting market behavior away from old cycles.
Bitcoin’s recent retreat toward $95,500 added fresh pressure across digital assets, yet comments from Bitwise CEO Hunter Horsley saw a different narrative. He argued that the industry has quietly moved through a bear phase during the past six months, suggesting that investors may now be approaching a turning point.
His remarks came as broader crypto stocks slipped, creating another layer of uncertainty. However, his assessment focused on structural changes that, according to him, now shape market behavior in new ways.
A Changing Framework for Market Cycles
Horsley stated on X that crypto no longer follows the old four-year price rhythm many traders reference. He said the model belonged to an earlier period when Bitcoin lacked broad access and regulatory clarity.
His comments pointed toward the influence of Bitcoin ETFs and what he described as a pro-crypto stance under President Trump. This shift introduced new participants and altered how investors decide when to buy or sell.
Moreover, his remarks suggested that this downturn looked different from past cycles. He said the market experienced a shorter dip that unfolded over several months rather than years. This view created discussion among investors who have tracked Bitcoin’s sharp move from its recent highs.
Broader Market Pullback Adds Context
While Horsley highlighted these changes, crypto-linked equities recorded losses on Friday. Strategy, previously known as MicroStrategy, dropped 6% as volatility continued. Additionally, Gemini Space Station and Bullish each fell around 2%. Coinbase slid 1%, while Bitmine Immersion Technologies traded about 3% lower.
These declines offered a backdrop for rising concerns about liquidity. They also connected directly to comments from Animoca Brands co-founder Yat Siu, who spoke with CNBC about current market pressures. His perspective helped broaden the discussion around investor decisions during the latest downturn.
Liquidity Shortfalls and Investor Decisions
Siu said reduced liquidity pushed some investors to sell assets to manage financial needs. He noted that less money remained available within the system, which contributed to recent movements. His comments aligned with Horsley’s argument that today’s market behaves differently from earlier eras.
He also emphasized that institutional investors do not follow the long-standing four-year cycle outlook held by many early Bitcoin participants. According to him, these firms often treat downturns as opportunities to enter positions rather than reasons to expect major corrections.
