- Hougan says Bitcoin’s drop shows bottom-range behavior driven by liquidity tightening and DAT unwind, not market exhaustion.
- Retail panic selling contrasts with steady accumulation from Harvard and Abu Dhabi funds during the recent volatility.
- Short-term exits and long-term buying show a clear timeframe divide, resembling past Bitcoin pullback cycles.
Matt Hougan, Chief Investment Officer at Bitwise Asset Management, said on CNBC in a recent interview that Bitcoin prices now reflect bottom-range behavior, not market exhaustion.
Speaking during a live broadcast segment, Hougan cited increased global risk-off sentiment, declining liquidity, and the DAT trade unwind as reasons behind the sell-off. He explained how institutional players, including Harvard and Abu Dhabi funds, began accumulating despite nervous retail behavior.
Market Stress and Pullback Drivers Explained
According to Hougan, short-term investors reacted sharply to volatility, which intensified after the October 10 crypto market disruption. Notably, he referenced concerns around global liquidity tightening and risk-off positioning across financial markets. He said Nvidia’s decline and broader equity weakness also pressured digital assets during the same period.
However, Hougan dismissed claims tying the downturn to a technical glitch at Binance. He described the exchange coding issue as minor and not a primary factor behind the market slide. CNBC host Carl Quintanilla posed the glitch theory, which Tom Lee also highlighted. Hougan clarified that liquidity changes and the DAT unwind carried more weight.
Furthermore, Hougan noted that Bitcoin previously surged from $70,000 to $125,000, which attracted a wave of first-time investors. However, those participants began exiting during heightened price swings. This exit, he added, contributed to short-term selling pressure.
Institutional Buying Activity Gains Focus
Hougan noted that long-term investors started increasing exposure at current levels. He confirmed Harvard Endowment and the Abu Dhabi sovereign wealth fund showed renewed interest during the pullback. These entities, according to Hougan, view Bitcoin through a long-term framework rather than short window pricing.
He also addressed price range discussions across the market. Hougan explained that analysts identified $84,000 as a critical level based on March retracement data. Some market participants, however, pointed to the post-election rally period tied to Donald Trump’s election as another reference zone.
Nevertheless, Hougan emphasized that institutional behavior differs sharply from retail response. Retail investors show caution and step back, while long-term funds selectively accumulate. That contrast, he said, reflects differing risk timelines and strategy approaches.
Timeframe Divide and Market Direction
Hougan reiterated that market movement now shows a separation between short-term pressure and long-term positioning. He stated that volatility forced weaker hands to exit and strengthened institutional conviction. He maintained that this pattern aligns with prior Bitcoin pullback phases.
