Bitwise CEO Hunter Horsley Declares Crypto Bear Market Nearly Over – Are You Ready for the Surge?
Bitwise CEO Hunter Horsley Sees Crypto Bear Market Nearing End Amid Strong Fundamentals
Cryptocurrency markets may have endured nearly six months of bearish conditions, but according to Bitwise CEO Hunter Horsley, the downturn could be approaching its conclusion. Horsley, a prominent voice in institutional crypto investment, provided a contrarian perspective to the prevailing sentiment that has dominated investor discussions throughout October and November. Despite recent volatility and asset price declines, he asserts that the long-term fundamentals of digital assets remain robust.
In a series of social media posts on Friday, Horsley argued that the traditional four-year crypto market cycle has effectively ended, replaced by a more mature market structure characterized by evolving dynamics and new participants. “Since the launch of the Bitcoin ETFs and new administration, we’ve entered a new market structure: new players, new dynamics, new reasons people buy and sell,” he wrote, emphasizing a paradigm shift in how digital assets are now being traded and valued.
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| Source: xpost |
Horsley expressed optimism about the current market setup, stating that there is “a pretty good chance” that crypto has been in a bear phase for nearly six months and is now nearing its end. He further commented, “The setup for crypto right now has never been stronger,” highlighting factors such as regulatory clarity, institutional investment infrastructure, and political support for digital assets as key contributors to a potentially favorable market trajectory.
Contrasting Sentiment Amid Extreme Fear
Horsley’s bullish assessment stands in stark contrast to prevailing market sentiment. At the time of his commentary, the Crypto Fear and Greed Index, a widely referenced sentiment indicator, had dropped to 16, signaling extreme fear among market participants according to CoinMarketCap.
Market analyst and CoinBureau founder Nic Puckrin observed that despite Bitcoin’s approximately 25% correction being less severe than previous dips of over 30%, investor sentiment has deteriorated sharply. “Even though this cycle’s price correction is smaller, the psychological impact on retail investors has been profound,” Puckrin noted. The Fear and Greed Index reached its lowest level since February 2025, reflecting heightened apprehension as asset prices remain well below their 2024 highs.
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| Source: CMC |
On Friday, Bitcoin briefly touched a six-month low of $94,590, prompting analysts to forecast potential further downside toward the $86,000 level. Despite this, experts including Horsley suggest that such levels could present strategic buying opportunities for investors willing to adopt a contrarian approach.
Liquidity and Macroeconomic Drivers
The current market environment is also influenced by broader macroeconomic conditions, particularly liquidity levels. Investor and financial educator Robert Kiyosaki attributed the recent downturn in cryptocurrencies to constrained liquidity. He suggested that both cryptocurrencies and precious metals are likely to benefit once governments increase money supply to cover budget deficits. Historical trends indicate that asset prices typically rise during periods of high liquidity fueled by low interest rates and monetary expansion, while lower liquidity tends to suppress growth or cause stagnation.
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| Source: Xpost |
The U.S. Federal Reserve’s monetary policy adds further complexity. Although the Fed has begun reducing interest rates, only about 44% of traders surveyed by the Chicago Mercantile Exchange expect a further rate cut in December. This divergence between market expectations and central bank actions underscores uncertainty about the Fed’s future policy path. Investors continue to debate whether the central bank will maintain a dovish stance or pause rate reductions depending on upcoming economic indicators.
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| Source: cmegroup |
Institutional Support and Regulatory Clarity
One of the key pillars of Horsley’s optimism is the institutional infrastructure supporting digital assets. The introduction of Bitcoin ETFs and regulatory approval in the United States has created mechanisms for safer institutional participation, providing liquidity and credibility to the market. This is coupled with political backing that favors the adoption of blockchain technology and digital currencies, a factor that Horsley believes fundamentally distinguishes the current cycle from previous ones.
The new market structure, according to Horsley, includes:
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Clearer regulatory guidelines that reduce uncertainty for both retail and institutional investors.
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Sophisticated institutional tools, including ETFs, custody solutions, and reporting frameworks.
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A growing base of informed investors and diversified market participants.
Together, these elements contribute to a more resilient market, capable of withstanding volatility while supporting long-term growth.
Contrarian Opportunities for Investors
Horsley’s contrarian view underscores a key principle in investing: market pessimism can often coincide with future opportunity. Historical patterns show that periods of extreme fear frequently precede recoveries, as overextended bearish sentiment creates buying opportunities for long-term investors. By contrast, widespread optimism can signal that markets are near local tops.
While retail investors react emotionally to volatility and price dips, institutional players and seasoned analysts often focus on underlying fundamentals and long-term trends. Horsley’s analysis suggests that investors who maintain a disciplined approach and prioritize structural factors over short-term sentiment may be well-positioned to capitalize on the next phase of market recovery.
Looking Ahead: What Traders Should Consider
For market participants navigating this complex environment, several factors are worth monitoring:
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Technical Levels: Bitcoin’s support around $94,000–$95,000 remains critical, while resistance zones near $100,000 could indicate the next short-term breakout.
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Liquidity Conditions: Central bank policies and money supply expansion will influence broader market dynamics.
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Institutional Activity: ETF flows, institutional adoption, and corporate investment announcements may provide early indications of recovery or continued pressure.
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Regulatory Developments: Policy clarity in the U.S. and other key markets could shape investor confidence and market behavior.
Horsley’s perspective highlights that despite near-term volatility and pervasive fear, the crypto market may be better positioned than ever for long-term growth. Contrarian investors who recognize the changing market structure and prioritize fundamentals could find compelling opportunities in the months ahead.
Conclusion
As digital assets continue to navigate the aftermath of a six-month downturn, the insights offered by Bitwise CEO Hunter Horsley provide a counterpoint to prevailing negative sentiment. The combination of regulatory clarity, institutional infrastructure, and political support, coupled with a potentially nearing end to the bear phase, creates an environment where long-term fundamentals may outweigh short-term fear. While retail investors remain cautious, those willing to adopt a strategic, contrarian approach could find themselves well-positioned to benefit from the next phase of market recovery.
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