Matt Hougan, chief investment officer of crypto asset management company Bitwise, posted on X last night to share his personal views on the current cryptocurrency market.

A frustrating dynamic about investing in bitcoin over the past year:Throughout bitcoin's history, various mechanisms have artificially pulled forward future demand and put it into a lock box. The biggest culprit was GBTC, which pulled forward tens of billions of dollars in…

— Matt Hougan (@Matt_Hougan) June 24, 2024

Matt Hougan believes that looking at the history of Bitcoin, various factors have led to "future market demand for Bitcoin" being pulled in advance and put into a "lock box." The biggest culprit is GBTC issued by Grayscale Asset Management.

Matt Hougan pointed out that before GBTC was officially transformed into an ETF, it was used by hedge funds to earn a premium, driving tens of billions of dollars in future demand in advance. Others, including the bankruptcy of Mt. Gox and the seizure of assets by Silk Road, have also resulted in Bitcoin being placed in a "lockbox." Matt Hougan explains:

“These lockboxes keep the price of Bitcoin at higher levels than in free-flowing markets, which is great. But now, because of the launch of ETFs and the passage of time, we are unlocking these assets. As a result, Bitcoin must attract It will take tens of billions of dollars of new demand to maintain the status quo.”

These lockboxes keep the price of Bitcoin higher than in a free-flowing market, which is great. But now, thanks to the launch of ETFs and the passage of time, we are unlocking these assets. As a result, Bitcoin must attract tens of billions of dollars in new demand to maintain the status quo. Bloomberg analyst Eric Balchunas previously said that Mt. Gox currently holds 141,686 BTC worth more than $9.26 billion, which is equivalent to more than half of the Bitcoin ETF inflows being offset.

Matt Hougan believes that the market has already priced in most of the outstanding assets. For example, outflows from GBTC have stabilized. However, many factors are still not fully digested, which has an impact on today's market. However, Matt Hougan also added:

“It will be a great feeling to see new demand translate more directly into price increases as we digest these pending assets.”

This article Bitwise Chief Investment Officer: Many factors have caused BTC’s “future demand” to be forced to advance, and tens of billions of dollars in new demand will be needed to maintain the status quo. It first appeared on Zombit.