Bitwise CEO Calls Bitcoin Slump a Generational Buying Opportunity for Institutions

Institutional investors are increasingly viewing the current Bitcoin slump as a long-term buying opportunity, according to Bitwise Asset Management executives.

Meanwhile, the broader crypto market continues to struggle through a deep downturn.

• Institutional investors increasingly view Bitcoin’s sell-off as a long-term entry opportunity.
• Bitcoin ETF trading volumes have surged to 3–4× normal levels, signaling heightened institutional engagement.
• The crypto market has experienced a prolonged downturn (“crypto winter”) since early 2025, per Bitwise’s CIO.
• Institutionally linked assets have outperformed retail-driven tokens, masking underlying weakness in retail participation.
• Ongoing ETF and corporate treasury accumulation is helping stabilize Bitcoin prices despite steep market-wide losses.

Speaking to CNBC, Bitwise co-founder and chief executive Hunter Horsley said trading activity in Bitcoin exchange-traded funds has surged well above normal levels. ETF volumes, he noted, are running three to four times higher than their recent 30-day averages. This underscores heightened engagement from both buyers and sellers.

Horsley described a clear divide in investor behavior. Long-term holders appear hesitant amid ongoing volatility, while newer institutional participants are seeing price levels they once assumed were out of reach.

According to him, many institutions view the current pullback as a renewed opportunity to enter the market at more attractive valuations.

That sentiment is translating into action. Horsley said a recent conversation with a wealth management firm revealed growing urgency among clients eager to deploy capital and seeking guidance on when to move.

These institutional dynamics are unfolding amid steep losses across digital assets. Since October 10, the global cryptocurrency market has declined by roughly 50%. The steep drop has consequently erased an estimated $2.2 trillion in market capitalization.

Bitcoin has closely tracked that broader decline. The asset has now erased its entire post-election rally and is down about 10% since Donald Trump’s election victory.

At the time of reporting, Bitcoin was trading near $66,157. This marks a decline of 6.3% over the past 24 hours, 20.3% over the past week, and nearly 48% from its October 6 peak of $126,080.

Against this backdrop, Bitwise chief investment officer Matt Hougan offered a longer-term perspective earlier in the week. Writing on the social platform X, Hougan said the crypto market entered a sustained downturn at the start of 2025.

He cautioned investors against viewing the current environment as a short-term correction. Instead, Hougan characterized it as a full-scale crypto winter, driven by excessive leverage and widespread profit-taking by early investors.

Moreover, drawing parallels to the downturns of 2018 and 2022, he argued that positive developments, such as regulatory progress or adoption headlines, rarely translate into higher prices. They only have an impact once overall market sentiment has fully reset.

Hougan also addressed how institutional activity shaped market performance throughout 2025. He pointed to divergences within the Bitwise 10 Large Cap Crypto Index. Specifically, assets tied to ETFs or corporate treasuries declined less sharply than tokens without institutional access.

Retail-focused crypto assets, he said, have remained in a deep slump since January 2025. While institutional inflows temporarily masked that weakness for certain assets, they did not alter the broader downward trend.

Still, Hougan noted that large-scale Bitcoin accumulation by ETFs and corporate treasuries has helped stabilize prices. He also cited XRP’s improved outlook following greater legal clarity in its case with the U.S. Securities and Exchange Commission.

Despite persistent price pressure, Hougan suggested the market may be closer to a turning point than many expect. Prolonged downturns, he said, are typically marked by widespread fear, falling prices, and investor exhaustion—conditions he believes are now firmly in place.

While acknowledging that the crypto winter has stretched on since early 2025, Hougan expressed cautious optimism that a recovery may not be far off.

Ultimately, his view reinforces a broader message from Bitwise leadership: for institutions willing to tolerate volatility, the current environment could represent a pivotal long-term opportunity.