Bitcoin has been stuck below $100,000. Traders are scratching their heads. Analysts are split. And crypto fans are somewhere between hopeful and frustrated. But according to Matt Hougan, CIO at Bitwise, this slowdown doesn’t mean the bull market is over. In fact, he thinks it’s part of a rare market moment that could be remembered as one of Bitcoin’s most important turning points.
Government Delays Slowed Things Down
Part of the pause came from the U.S. government temporarily shutting down operations. During that time, a lot of approvals, ETF filings, and crypto-related paperwork got delayed. Products like XRP, Litecoin, Solana, and Hedera ETFs were technically approved, but new filings couldn’t move forward.
Now that government work is back, Hougan expects a flood of new ETF approvals, product launches, and institutional access. In his words, this is “nothing but tailwinds” for crypto. In other words, the market could soon get a serious boost.
The $100K “Psychological Wall”
Even with good news coming in, Bitcoin kept hitting $100,000 and bouncing back. Why? Hougan says that level became a psychological milestone. Many long-term holders, some who had never sold before, decided it was finally time to take partial profits.
Interestingly, much of this selling didn’t even show up directly in Bitcoin trades. Instead, holders used options to sell upside potential, which let them profit without triggering taxes. But the effect was the same: less upward momentum. Think of it as a hidden wave of selling that slowed the price.
Crypto Fatigue and Cycle Trauma
Investors are still carrying emotional scars from past crashes — from FTX to meme coins gone bust. People who survived multiple cycles since 2013 are extra cautious, trying to avoid another multi-year bear market. This fear slowed big bets and kept bullish energy low.
The lack of a clear altcoin boom also made the overall market feel weaker, reducing excitement and trading activity.
Still Bullish, But Patient
Despite the pause, Hougan isn’t worried. He doesn’t think Bitcoin has peaked for good. He believes the old four-year cycle theory is fading, and the market will start reacting to new fundamentals: more institutional money, clearer regulations, tokenized assets, and global ETF access.
He even calls this period a “gift to long-term investors,” because the underlying strength of the market is stronger than ever. Once the remaining sell pressure eases and institutional demand shows up, Bitcoin could launch into a big upward phase — catching skeptics off guard.
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