Cryptocurrency asset management company Bitwise’s Chief Investment Officer Matt Hougan shared his personal views on the current cryptocurrency market on X last night.
Matt Hougan believes that, looking at the history of Bitcoin, various factors have led to the “future market demand for Bitcoin” being advanced and placed in a “lockbox.” The biggest culprit is the GBTC issued by Grayscale Asset Management Company.
Matt Hougan pointed out that before the formal transformation of GBTC into an ETF, hedge funds used it to earn premiums, which advanced future demand by hundreds of billions of dollars. Other factors such as the bankruptcy of Mt. Gox and the seizure of assets from Silk Road also led to Bitcoin being placed in a “lockbox.” Matt Hougan explained:
These lockboxes keep the price of Bitcoin at a higher level than in a freely flowing market, which is good. But now, with the launch of ETFs and the passage of time, we are unlocking these assets. As a result, Bitcoin must attract hundreds of billions of dollars in new demand to maintain the status quo. Bloomberg analyst Eric Balchunas previously stated that Mt. Gox currently holds 141,686 BTC, worth over $9.26 billion, which is equivalent to more than half of the inflow of Bitcoin ETFs being offset.
Matt Hougan believes that the market has already digested most of the pending assets. For example, the outflow of funds from GBTC has stabilized. However, many factors still have not been fully digested, which has an impact on today’s market. However, Matt Hougan also added:
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