Two prominent crypto research voices have separately suggested that Bitcoin’s prolonged downturn may be close to an end. Bitwise Asset Management CIO Matt Hougan told Bloomberg that Bitcoin may have already passed its bear-market bottom, pointing to price resilience despite a series of negative headlines. Those headwinds included the Coldcard wallet hack, delays to the proposed CLARITY Act, and recent Bitcoin sales by Strategy, formerly MicroStrategy. Hougan argued that these developments might have triggered a sharper sell-off in weaker conditions, and the relatively stable price suggests selling pressure is exhausting and a market floor may be forming.
Hougan expects the next major bull phase to be driven by institutional capital inflows through large asset management platforms. He noted that traditional financial institutions are increasingly offering crypto exposure, following the launch of spot Bitcoin ETFs in early 2024, which attracted billions in net inflows. The CLARITY Act’s delay remains a source of regulatory uncertainty, while the Coldcard hack raised security concerns, but neither event derailed Bitcoin’s price.
Grayscale’s head of research, Zach Pandl, offered a similarly cautious view, saying the Bitcoin bear market may be nearing its conclusion as prices stabilize. Pandl highlighted rising inflation concerns, currency debasement, and mounting government debt as macro forces that could increase demand for scarce assets such as Bitcoin. He also noted that the expansion of stablecoins and tokenized services is likely to integrate blockchain technology further into mainstream finance.
Pandl pointed to demographic shifts, with younger investors showing greater appetite for digital assets, and expected institutional participation to keep rising through regulated exchange-traded products. On-chain data shared by Grayscale showed roughly 57 million Bitcoin addresses with a non-zero balance as of July 31, a long-term upward trend often interpreted as growing network adoption. Both analysts stressed that market forecasts remain uncertain, and Bitcoin remains a highly volatile asset.