Bitcoin Price Could Experience New Movement, Says Bitwise CIO Matt Hougan
Matt Hougan, the chief investment officer of Bitwise, a crypto index fund manager, suggests that Bitcoin (BTC) may be on the brink of entering a new phase of price movement. Hougan is closely monitoring two key metrics: Bitcoin options and the recently approved spot BTC exchange-traded funds (ETFs).
One metric that piques Hougan’s interest is comparing net flows into the newly approved ETFs versus Grayscale’s Bitcoin Trust (GBTC). Additionally, he is keeping an eye on the annualized basis on Binance and BTC options skew. The expiration of options and futures contracts on Friday could serve as a turning point for this round of price movement as traders unwind their pre-ETF positions.
As of now, Bitcoin is trading at $39,698, experiencing a nearly 7% drop in the past week.
ETF Expectations-Led Sell-Off, Not ETF Resulted Sell-Off
Hougan dismisses the notion that BTC’s recent losses are a result of an ETF-led sell-off. He clarifies that ETFs, including GBTC, are net buyers of Bitcoin. Instead, he attributes the sell-off to market expectations surrounding ETF approval. Traders anticipated larger net flows into ETFs than what has been observed so far and are now adjusting their positions accordingly.
Hougan believes that while the market overestimated the short-term impact of ETFs, it is underestimating their long-term impact.
Hot Take: Bitcoin Price May See Significant Movement Soon
According to Matt Hougan, chief investment officer of Bitwise, Bitcoin could be poised for a new chapter in terms of its price movement. Hougan is closely monitoring Bitcoin options and the recently approved spot BTC exchange-traded funds (ETFs). He is particularly interested in comparing net flows into newly approved ETFs with Grayscale’s Bitcoin Trust (GBTC) and looking at the annualized basis on Binance and BTC options skew. The expiration of options and futures contracts on Friday could mark a turning point for Bitcoin’s price movement as traders unwind their pre-ETF positions. Despite recent losses, Hougan emphasizes that ETFs are net buyers of Bitcoin, dispelling the notion of an ETF-led sell-off. He believes that the market has overestimated the short-term impact of ETFs and is underestimating their long-term impact.
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