Deep Tide TechFlow News, on December 23, according to Cointelegraph, Bitwise Chief Investment Officer Matt Hougan commented on the recent correction in the cryptocurrency market, stating that approximately $2 billion in forced liquidations over the past few days reflects the natural clearing process of market leverage. This phenomenon has frequently occurred since the early days of cryptocurrency and helps reset leverage levels without impacting the long-term bull market pattern.
Hougan emphasized that institutional capital is entering the market on a large scale. He noted that after the U.S. elections, Bitcoin ETFs experienced 15 consecutive days of net inflows, primarily from institutional investors. According to Bitwise's annual survey, institutional investors have been on the sidelines for the past six years due to unclear regulations, but now, with clearer regulations, the barriers to institutional entry have been removed.
Previously, BlackRock suggested a portfolio allocation of 1-2% in Bitcoin. Considering that the global institutional asset size reaches $100 trillion, a 2% allocation would bring substantial incremental capital, and Hougan expects this trend to significantly strengthen by 2025.
