TechFlow News, February 27: Matt Hougan, Chief Investment Officer at Bitwise, stated that the real reason behind Bitcoin’s price decline is that a large number of holders have sold their Bitcoin exposure—via spot markets, deleveraging positions, and writing call options against Bitcoin collateral.
He dismissed various conspiracy theories circulating in the market—including claims blaming Binance, Wintermute, offshore macro hedge funds, “paper Bitcoin,” and most recently, Jane Street. Hougan noted that investor sell-offs were driven by factors such as the four-year cycle pattern, concerns over quantum computing, and capital reallocation toward AI startups. He believes that the majority of the selling pressure has nearly subsided and that the market is currently bottoming out, with Bitcoin poised to reach new all-time highs. Hougan described the current situation as a “classic crypto winter” and expressed confidence that it will be followed by a “classic crypto spring.”
