Bitcoin Has Become More Resilient Against Negative News

Met Hogan, the Chief Investment Officer of Bitwise, believes that Bitcoin's limited reaction to recent negative news could be a sign that the market is approaching the bottom of the crypto winter. Despite the ongoing selling of Bitcoin, the drop in STRC's preferred shares, the reduced chances of passing the crypto transparency law, and the $116 million hack of the Coldcard hardware wallet, Bitcoin's price has not reacted strongly. Hogan states that in typical bear markets, negative news usually creates significant selling pressure, but Bitcoin's recent resilience may indicate a reduction in selling power and a gradual improvement in investor sentiment. He emphasizes that it is still too early to definitively determine the market bottom, and Bitcoin's reaction to the next negative news will be very important. Hogan also points out that large wealth management platforms could become the next buyers of Bitcoin, gradually bringing new capital into the market. He considers ETFs to be a more suitable option for holding the majority of Bitcoin investments, suggesting that a smaller portion should remain for self-custody in cold wallets. Overall, the most significant current market signal is Bitcoin's resistance to negative news; a behavior that could indicate a weakening of selling pressure and the crypto winter approaching its bottom.

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