The post Why Bitcoin’s Latest Crash Is A Historic Buying Opportunity: Bitwise appeared on BitcoinEthereumNews.com.

Bitwise CIO Matt Hougan said Monday that he views the weekend’s violent selloff in crypto/equities as a Bitcoin buying opportunity. In a Twitter thread Monday, the executive likened the market crash to March 12, 2020 – a day of “chaos” that pre-empted historic new highs for crypto over the following months. Bitcoin Buying Opportunity, Says Bitwise As noted by Hougan, the NIKKEI – Japan’s stock market index – experienced its worst day since 1987 on Monday, dropping 12% on the day. The carnage spread to U.S. markets as well, with the NASDAQ100 dropping 2.9%, and Bitcoin falling a whopping 18.6% on the week. Similarly, in March 2020, the Dow Jones Industrial Average had its worst sell-off since 1987, and Bitcoin fell 37% from $7,911 to $4,971. However, Bitcoin soared over the following month, and eventually reached a peak of $64,000 within a year as central banks responded with lower interest rates and quantitative easing. “Nothing fundamental changed about bitcoin because of Covid,” Hougan explained. “At the same time, Covid supercharged the reasons for bitcoin’s long-term rise. It showed us that central banks would bail out the economy at the first sign of trouble.” The executive sees a similar setup for Bitcoin today. Bad macroeconomic news from Japan met with news of Jump trading liquidating hundreds of millions of dollars in crypto to send Bitcoin’s price spiraling to its lowest level since February. The events have market pricing in a near-guaranteed interest rate cut of 0.5% from the Federal Reserve in September. It even has some, including Wharton finance professor emeritus Jeremy Siegel, expecting an “emergency meeting” from the Fed before that time. “Maybe this time really is different, but I wouldn’t bet on it. In fact, I’m betting the other way,” Hougan said. Raoul Pal: Just A Macro Spasm Real…

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Filed under: News - @ August 6, 2024 10:24 am