According to Odaily, Matt Hogan, chief investment officer at Bitwise, expressed concerns about the Bitcoin investment scenario last year. He noted that various mechanisms have artificially boosted future demand, with Grayscale GBTC being the main reason. With hedge funds executing distinct transactions, GBTC brought in billions of dollars in future demand.
Other mechanisms, including the bankruptcy of Mt.Gox and the seizure of bitcoins from Silk Road, also played a role. These “safety boxes” have kept Bitcoin prices higher than those in the free-flowing market, which has been beneficial. However, these assets have now been unlocked thanks to ETFs and the passage of time. As a result, Bitcoin must attract billions of dollars in new demand to maintain its current status.
Hogan added that the market has already cleared most of the outstanding issues, such as the stability of GBTC assets. However, not all outstanding issues have been resolved, putting pressure on the cryptocurrency market today.