TechFlow reported on December 23 that according to Cointelegraph, Matt Hougan, Chief Investment Officer at Bitwise, commented on the recent cryptocurrency market correction. He noted that approximately $2 billion in forced liquidations over the past few days reflects a natural deleveraging process common since the early days of crypto, helping reset leverage levels without impacting the long-term bull market outlook.
Hougan emphasized that institutional capital is entering the market on a large scale. He pointed out that Bitcoin ETFs have seen net inflows for 15 consecutive days following the U.S. election, primarily driven by institutional investors. According to Bitwise's annual survey, institutional investors had previously remained on the sidelines due to regulatory uncertainty. Now, with clearer regulations, barriers to institutional participation have been removed.
Previously, BlackRock recommended allocating 1–2% of investment portfolios to Bitcoin. Given that global institutional assets total around $100 trillion, a 2% allocation could bring substantial new capital into the market. Hougan expects this trend to strengthen significantly in 2025.
