Bitcoin’s Dip: Institutional Accumulation Amidst Retail Panic

Bitwise CIO Matt Hougan suggests Bitcoin’s recent price drop is a temporary correction driven by liquidity tightening and the unwinding of debt trade (DAT), not a sign of widespread market exhaustion. He argues that institutional investors, including Harvard and Abu Dhabi funds, are accumulating Bitcoin despite the retail market’s reaction to volatility, which intensified after the October 10 crypto market disruption. Hougan believes this suggests a split between short-term buyers and long-term investors with different time horizons for potential gains.