In a recent interview, Bitwise CEO Hunter Horsley discussed the current state of Bitcoin, emphasizing its drop below $70,000 as a potential opportunity for institutional investors. "Long-time holders may be feeling uncertain, but institutional investors are seeing an opportunity they thought they had missed," Horsley stated during his appearance on CNBC.
The decline in Bitcoin's price has coincided with broader market trends, as the cryptocurrency is swept up with other macro assets. Despite the downturn, institutional interest remains robust. Horsley noted that Bitwise, which manages over $15 billion in institutional funds, witnessed more than $100 million in inflows in a single day when Bitcoin was priced around $77,000.
Bitcoin's recent decline follows an unusual period marked by both efforts to achieve regulatory clarity and growing interest from institutional players. According to CoinMarketCap, Bitcoin's value has dropped by 22.60% over the past month, trading at $69,635 at the time of the report.
Horsley described the current market as one where investors are liquidating assets. "It’s mostly trading in line with other liquid assets," he explained. This trend is reflected in the performance of other commodities as well, such as gold and silver, which have also experienced significant declines from their all-time highs.
The interest in Bitcoin extends beyond institutions to retail investors as well. Google Trends data indicates a spike in searches for "Bitcoin," reaching peak interest since October 2024. Meanwhile, BlackRock's Bitcoin exchange-traded fund (ETF) recorded $231.6 million in inflows last Friday, despite experiencing significant outflows earlier in the week.
Overall, despite the recent market turbulence, institutional demand for Bitcoin remains strong, presenting what Horsley describes as a fresh opportunity for investors to engage with the cryptocurrency market.