Bitwise: Market anxiety reaches peak, indicating that the crypto market is nearing the bottom

According to CoinDesk, Bitwise stated that the current high level of anxiety in the market may indicate that the market is approaching a bottom.

The company pointed out that this sense of anxiety is similar to the sentiment at the bottoms of the cycles in 2018 and 2022, which both became "excellent buying opportunities." Bitwise Chief Investment Officer Matt Hougan noted that investors who bought at the 2018 low saw returns of about 2000%, while those who entered at the 2022 low experienced an increase of about 300% over more than three years. He believes that the current disconnection between prices and actual industry progress reflects these cyclical characteristics.

Hougan emphasized that the rise of stablecoins, asset tokenization, and trends like "AI + finance" indicate that the ecosystem is still maturing and the fundamentals have not changed. Regarding the market turnaround, Bitwise believes that crypto bear markets typically end with exhaustion of sentiment rather than sudden excitement. Potential upward catalysts include the passage of the Clarity Act, a shift in market risk sentiment, rising expectations for interest rate cuts, and technological breakthroughs in the intersection of AI and crypto. Without a sudden positive shock, the market may "gradually grind to a bottom."