Bitwise CIO: Bitcoin Is Currently in the Capitulation Phase, Price Drop Driven by Long Liquidations Rather Than Market Manipulation Conspiracy

BlockBeats News, February 27th, Bitwise Chief Investment Officer Matt Hougan stated, "Various conspiracy theories abound. It started with Binance, then Wintermute, then some unknown offshore macro hedge fund, then 'paper Bitcoin,' and today it's Jane Street's turn, which may change to someone else next week."

The true reason for Bitcoin's drop is that a group of people who were previously long on Bitcoin sold their Bitcoin exposure. They sold through the spot market, sold by unwinding leveraged positions, and also reduced exposure by selling call options. They sold because of the 'four-year cycle,' concerns about quantum computing, a desire to invest in AI startups, and various other reasons.

Most of their selling behavior has already been completed, and we are in the process of forming a bottom. The future will still reach new all-time highs. This is a typical crypto winter, which will eventually usher in a typical crypto spring. People always hope to find someone to blame — I understand this sentiment — but reality is often more mundane than conspiracy theories."