The Bitcoin price has been on one of its worst runs in recent years, falling by double digits over the past week. While the premier cryptocurrency seems to be recovering well over the past day, the single-day 14% correction — on Thursday, February 5 — is an occurrence that has instilled fear in the market, and rightly so. In their latest report, a renowned pundit has tried to come up with answers to the questions currently swirling around the Bitcoin price.
Crypto Bear Markets End In Exhaustion, Not Excitement — Bitwise CIO
On Friday, February 6, Bitwise’s Chief Investment Officer, Matt Hougan, answered questions about the current structure and outlook for the Bitcoin price. The senior executive wrote about why the market is down, if it would fall further, and what would help the BTC price reach a bottom.
Hougan started by noting that there is never a single reason why the crypto market fell, as multiple factors are often at play. In this latest correction, the Bitwise CIO listed about six contributing factors, including front-running the four-year cycle, the loss of “attention investor” to AI and metals, and the infamous October 10 liquidation event.
It is important to note that the market and the Bitcoin price action has not been the same since the significant leveraged blowout on October 10, 2025. This historical liquidation event came off the back of United States President Donald Trump announcing a surprise 100% tariff on all Chinese goods.
Other factors highlighted in Bitwise’s report include concerns around Kevin Warsh as Federal Reserve chair, quantum computing fears, and macro risk-off sentiment. Notably, it could be said that Bitcoin and the crypto market are not the only victims of this sentiment shift, as mineral and stock markets have also seen significant declines.
Hougan mentioned the good news is that the sell-off signs appear to be showing signs of exhaustion.
The Bitwise CIO wrote:
According to onchain data, long-term holders have stopped selling aggressively, and some are beginning to nibble around the edges. Open interest on bitcoin derivatives exchanges has fallen to levels last seen in 2024.
Hougan went on to say that, if history is to go by, it is possible for the Bitcoin price to fall further in the current structure. However, the investment expert also believes that premier cryptocurrency is a more mature asset and is less likely to see a 77% correction as in the past.
While he could not pinpoint the exact time the Bitcoin price would reach a bottom, the Bitwise CIO revealed that the catalyst that could turn things around is simply time. “Crypto bear markets tend to end in exhaustion, not excitement,” Hougan concluded.
Bitcoin Price At A Glance
As of this writing, the price of BTC stands at around $67,834, reflecting an over 4% jump in the past 24 hours.
