Hunter Horsley argues the sector is entering a new market structure as fear hits a six-month high
The recent crypto sell-off has pushed market sentiment into “extreme fear,” but Bitwise CEO Hunter Horsley says long-term fundamentals remain intact — and possibly stronger than ever. In a detailed post on Friday, Horsley pushed back against widespread pessimism that has gripped investors as Bitcoin and major altcoins trade well below their 2024 highs.
Horsley argued that the sector is no longer following the historic four-year cycle. Instead, he says digital assets have transitioned into a more mature market structure shaped by new participants and shifting regulatory dynamics.
“Since the launch of the Bitcoin ETFs and new administration, we’ve entered a new market structure,” he wrote. “New players, new dynamics, new reasons people buy and sell.”
He added that there is a realistic chance the market has already been in a downtrend for nearly six months and is now approaching the end of that phase. “The setup for crypto right now has never been stronger,” Horsley said, offering one of the few optimistic takes amid widespread concern.
Investor sentiment, however, has moved in the opposite direction. The Crypto Fear and Greed Index dropped to 16 over the weekend — its lowest reading since February. Analysts say fear levels have deepened even though this year’s 25% correction is actually milder than previous cycles, where drops exceeded 30%.
Market data shows Bitcoin fell to a six-month low of $94,590 on Friday, prompting projections of a potential decline toward the $86,000 area.
Still, some analysts argue panic is being driven more by liquidity pressures than changing fundamentals. Financial educator Robert Kiyosaki echoed this view, saying global cash shortages are weighing on risk assets, but he expects Bitcoin and gold to rise once governments resume large-scale money printing.
Economists note that liquidity remains the key driver for asset prices. High liquidity boosts markets, while tight credit conditions often stall or reverse price growth.
Although the U.S. Federal Reserve has begun cutting rates, traders remain split on whether another reduction will come in December.
As fear dominates retail sentiment, institutional voices like Horsley suggest the groundwork for the next phase of growth may already be forming beneath the surface.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.