Bitwise CIO Matt Hougan has broken silence on the retail sentiment in the cryptocurrency market that has remained weak despite growing institutional confidence. The Bitwise CIO believes the market is positioned for long-term growth, with institutional investors increasing their exposure.

While Bitcoin price has performed well, altcoins have struggled, leading to cautious retail sentiment. However, crypto analyst have pointed out that an altcoin Golden Cross has just formed again, a pattern historically associated with an altcoin season rally.

Institutional Investors Show Strong Confidence in Crypto

Institutional investment in cryptocurrency has reached record levels. Bitwise CIO Matt Hougan has highlighted that ETFs and corporations have purchased approximately 100,000 BTC this year, while only 18,000 BTC have been mined. The increasing demand has contributed to Bitcoin price stability and long-term growth potential.

“From a risk-adjusted perspective, this may be the best time in history to invest in crypto,” Matt Hougan stated. He noted that the regulatory environment has improved, allowing large financial firms to participate in the crypto ecosystem with more confidence.

Government support for stablecoins and blockchain innovation has also encouraged institutional adoption. Bitwise CIO believes this shift will extend beyond Bitcoin and eventually drive an altcoin rally as the broader crypto ecosystem expands.

Retail Investors Remain Cautious as Altcoins Struggle

Despite Bitcoin price gains, retail sentiment remains uncertain. Many retail investors prefer altcoins, and their poor performance has led to pessimism. While Bitcoin price has increased 95% over the past year, Ethereum has only risen 2%, and several smaller assets have posted negative returns.

A report from Bitwise’s proprietary crypto sentiment index shows that retail sentiment is near historic lows. Bitwise CIO explained that the absence of an altcoin rally has contributed to this cautious outlook.

“Retail investors typically look for high-growth opportunities, and without a strong altcoin rally, sentiment has remained weak,” he said.

However, market analysts suggest that retail sentiment often lags behind institutional trends. Crypto analyst Lofty, siding with Bitwise CIO has pointed out that the altcoin golden cross has just formed again, a technical indicator that previously signaled major altcoin rallies.

Bitwise CIO Predicts Altcoin Rally

Bitwise CIO believes that an altcoin rally is approaching as institutional adoption increases and regulatory clarity improves. Many altcoins have faced legal uncertainty in recent years, which has slowed adoption. However, recent regulatory developments have made the landscape more stable.

“The best developers and the largest institutions now feel comfortable building in crypto,” Bitwise CIO Matt Hougan said. He pointed to the record growth of stablecoins and the rise of tokenization projects like Ondo Finance as early signs of altcoin adoption accelerating.

Crypto analyst Lofty’s observation of the altcoin golden cross suggests that the market is aligning with previous altcoin rally cycles. Analysts expect capital rotation from Bitcoin into altcoins, which historically occurs when Bitcoin dominance reaches a peak.

Bitcoin Price Stability and Market Outlook

Bitcoin price remains the dominant factor in crypto market movements. Following a hotter-than-expected CPI report, Bitcoin price saw a brief 1.9% decline, trading at $95,340 as of February 11, 2025. However, institutional demand continues to support prices, making further long-term growth likely.

Meanwhile, the total altcoin market cap declined by $234 billion in two weeks, marking one of the largest downturns in recent history. However, Bitwise CIO sees this as an opportunity rather than a long-term setback.

“Altcoin adoption is growing, and the structural changes happening today will drive the next major altcoin rally,” Bitwise CIO Matt Hougan stated. He noted that upcoming FTX repayments, expected to inject $18 billion in liquidity, could fuel an altcoin rally as capital re-enters the market.

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.