Matt Hogan, chief investment officer of Bitwise, the largest digital asset manager in the United States, expects Bitcoin price volatility to decrease as new players enter the market “to make informed purchases.”
Bitwise CEO: ‘Thoughtful’ Buyers Will Bring More Stability to Bitcoin
Matt Hogan, chief investment officer at Bitoniez, a cryptocurrency-based fund management company, gave his opinion on the current state of Bitcoin prices and their development. Hogan emphasized that the market now has what he calls “considered” buyers, a group that likely includes institutions and funds that have decided to buy Bitcoin as part of a structured hedge strategy, such as Michael Saylor’s MicroStrategy.
Hogan viewed the entry of these new players positively, explaining that they, considering Bitcoin as a reserve asset within a systematic assessment of its merits, would help stabilize the market. On social media, he explained:
Every time Bitcoin started to decline, people started to worry that it would hit zero. Now that’s no longer an issue, and more and more investors are looking for an entry point instead.
Hogan’s considerations underscore the difference between retail buyers, who were easily influenced by market sentiment to sell their bitcoin, and this new class of buyers, who were not affected by these fluctuations. Instead, they were waiting for bitcoin to become cheaper to increase the quantity, which would cause the price to recover, as happened recently when bitcoin fell from around $100,000 to prices below $92,000.
This can also be seen as a result of Bitcoin’s maturation as an asset, with some governments around the world, including the United States, considering it a reserve. The amount of Bitcoin available in the market has shrunk, reducing the damage that any massive move could cause to the broader market.