A top executive at Bitwise Asset Management says the current dip in crypto prices is temporary.
In a new Yahoo Finance interview, chief investment officer (CIO) Matt Hougan says that crypto prices will rally during the second half of the year.
“It always is uncomfortable when the market goes down. But I think we’re actually setting up for an extraordinarily strong second half of the year.”
Hougan says the dip in crypto prices is caused by a medley of issues.
“The current pullback is being driven by three things which are going to resolve. One is the broad market shift to a risk-off market that’s pushing through all sorts of risk assets of which crypto is one. I think we’re most of the way there to adjusting to this new reality.
The second piece is Biden’s executive order on crypto which is coming out this week. I think once we get past that that will be a relief. And then some tax-related selling.
I think there are short-term hurdles in front of us, but as I look at the underlying trends, I’m extremely bullish about where we end up by the end of this year.”
According to previous reports, the Biden administration is preparing to issue an executive order directing US government agencies to look into digital assets and develop a strategy for regulating them.
Hougan says that Bitcoin (BTC) could hit new all-time highs on the back of positive developments for the flagship digital asset and the wider cryptocurrency space.
“I wouldn’t be surprised to see [Bitcoin] challenge and even surpass the previous all-time highs as long as things break along positive lines.
Examples of what that would mean – if we get a Bitcoin ETF approved. If we see reasonable regulatory outcomes out of Washington D.C. And if we get broader continued positive trends in terms of institutional adoption of crypto.
I certainly think new all-time highs are insight by the end of the year if we see those kinds of things.”