Bitwise CIO said Bitcoin’s risk of $0 is gone and the downtrend is now attracting buyers.

By Crypto Gloom On Nov 27, 2024

Key Takeaways

The risk of Bitcoin falling to zero has disappeared, attracting value-focused buyers during the downturn.
The market is maturing, and the intensity of price corrections is decreasing, indicating a growing investor base.

Bitwise CIO Matt Hougan referenced a recent post by CoinDesk analyst James Van Straten, commenting on a major change in Bitcoin market behavior.

This post captures a very important change. “Value” buyers now exist in Bitcoin.

One reason Bitcoin declines have been so violent in the past is because whenever BTC started falling, people started worrying that Bitcoin would hit $0. That is now off the table and there… https://t.co/tFQQxrKff4

— Matt Hogan (@Matt_Hougan) November 27, 2024

“The bidding is relentless,” Van Straten, who had predicted a 10% correction as Bitcoin approached $100,000, said on November 27. The market considers the value of BTC to be $90,000.”

Hougan used this post to explain how Bitcoin declines have become less severe over time.

“One reason Bitcoin declines have been so violent in the past is because whenever BTC started falling, people started worrying that Bitcoin was going to hit $0,” Hougan said. “That’s now off the table.”

These comments led to Bitcoin falling nearly 10%, as Van Straten predicted, but it has since recovered nearly 6% to $96,000, confirming that the Bitcoin market is mature and resilient to fears of a collapse. I give it to you.

He highlighted the emergence of “value” buyers, investors who see downturns as opportunities rather than signs of collapse.

Hougan explained that these changes, along with broader market maturation, have reduced the “violence” of adjustments.

While he acknowledged that Bitcoin’s volatility remains high, he emphasized that its trajectory is underpinned by stronger investor confidence.