After a sharp dip to just above $94,000 earlier Wednesday, driven by unexpectedly high U.S. inflation data, Bitcoin (BTC) has managed to recover and climb back to $97,500. The cryptocurrency’s brief decline came in response to the inflation figures, which were stronger than anticipated, sparking concerns in the markets. However, Bitcoin quickly reversed course, showing resilience as it rebounded to a higher price.
Besides, during his second day of testimony before Congress, Federal Reserve Chairman Jerome Powell stated that the latest CPI data indicates the central bank is close, but still not quite at its inflation goal.
The Striking Contrast Between Investors
Recently, Matt Hougan in a note to his clients shared that there’s a striking contrast in crypto between institutional and retail investors. He noted that while Institutional sentiment is the most bullish he has ever seen, however retail investors are feeling hopeless. He noted that retail investors are discouraged because altcoins are underperforming.
“Retail crypto loves to speculate on altcoins, and the lack of an “altcoin season” has them depressed,” he shared. Hougan believes that institutions are making the right move. While it’s easy to be optimistic about Bitcoin, with ETFs and corporations already buying over 100,000 BTC this year, he thinks the future for altcoins looks stronger than ever for the long term.
Altcoin Boom Soon? Matt Hougan Sees Opportunity
While Hougan acknowledged that the altcoin market is more complicated now, with no major new trends like DeFi or ICOs from previous cycles, except for the short-lived “memecoin” boom, however, with clearer regulations, the U.S. focusing on stablecoins, and growing institutional confidence, he believes the industry will bring DeFi to a wider audience.
“In a year or two, my guess is that you’re not going to have to squint to see the transformation in altcoins; the impact will be self-evident. And overwhelming,” he noted. “Retail sentiment is bad in crypto right now, and to me, that signals opportunity.”
