Bitwise CIO says Bitcoin's $0 risk is gone, pullbacks now attract buyers

Key Takeaways

Bitcoin’s risk of falling to zero has disappeared, attracting value-focused buyers during pullbacks.
The market has matured, with reduced price correction intensity indicating a growing investor base.

Bitwise CIO Matt Hougan has weighed in on a key shift in Bitcoin market behavior, referencing a recent post by CoinDesk analyst James Van Straten.

The post captures a really important change: “Value” buyers now exist in bitcoin.

One reason bitcoin pullbacks have been so violent in the past is that, every time BTC started to retreat, people would start to worry that it was going to $0. That’s now off the table, and there… https://t.co/tFQQxrKff4

— Matt Hougan (@Matt_Hougan) November 27, 2024

Van Straten, who had predicted a 10% correction as Bitcoin approached the $100,000 mark, said on November 27, “The bidding is relentless. Market deems $90k value for BTC.”

Hougan used the post to illustrate how Bitcoin pullbacks have become less severe over time.

“One reason Bitcoin pullbacks have been so violent in the past is that, every time BTC started to retreat, people would start to worry that it was going to $0,” Hougan said. “That’s now off the table.”

These comments come as Bitcoin dropped nearly 10%, as Van Straten predicted, but has since recovered almost 6% to reach $96,000, confirming that the Bitcoin market has matured and is resilient against fears of collapse.

He highlighted the emergence of “value” buyers—investors who view dips as opportunities rather than signs of collapse.

Hougan explained that this change, along with the broader market maturing, has reduced the “violence” of corrections.

While he acknowledged that Bitcoin remains volatile, he emphasized that its trajectory is underpinned by stronger investor confidence.