Bitwise CIO Matt Hougan says the crypto market may be nearing a turning point as retail exhaustion deepens and institutional demand quietly builds.
Appearing on CNBC, Hougan — who oversees $12 billion in assets at Bitwise — said retail sentiment is at “maximum desperation” following months of liquidations, leverage blowouts, and yield protocol failures.
“It’s hard to find a crypto native investor who still has much enthusiasm,” he said. “That market is close to a bottom.”
In contrast, Hougan noted that institutional investors remain upbeat.Â
“When I speak to financial advisors, they’re still excited to allocate to an asset class that’s delivered strong long-term returns,” he said, adding that he expects a year-end rally as institutional capital begins to take the lead.Â
“So I’m optimistic, but we do have to finish this wash out of retail sentiment,” Hougan said.
Meanwhile, on Capitol Hill, Senator Cynthia Lummis reaffirmed her support for digital asset integration within the U.S. banking system.Â
Addressing tensions over stablecoin regulation, Lummis said she wants community banks to be able to custody and manage both fiat and digital assets.
“This is the 21st-century economy,” Lummis said on X. “Digital assets are the future, and we need to make sure community banks embrace the opportunity.”
She noted that Louisiana, Virginia, and Wyoming already allow banks to custody crypto — and expects more states to follow as new legislation advances.
Bitcoin price rebound
Bitcoin and the broader crypto market has seen a turbulent month, dipping below $100,000 on Tuesday — its lowest level since June — before rebounding above $103,000 today.Â
The slide was driven by heavy selling pressure, nearly $1.8 billion in ETF outflows, and a stronger U.S. dollar following Federal Reserve Chair Jerome Powell’s hawkish tone, signaling that interest rates could stay higher for longer.
The sell-off traces back to October 10, when President Trump announced 100% tariffs and export controls on China, sparking a broad crypto liquidation. Bitcoin fell roughly 20–25% from early October highs, while altcoins like Ethereum and Solana dropped as much as 40%. Crypto-linked stocks, including MicroStrategy, Coinbase, and Robinhood, also slid.Â
Open interest in Bitcoin futures fell around 30%, reflecting a pullback from leveraged traders, and the crypto fear and greed index reached “extreme fear.”
But, as retail investors capitulate, Matt Hougan’s comments suggest institutional demand could soon take the lead in crypto accumulation.