Bitwise CIO Matt Hougan Says STRC Volatility Signals Late-Cycle Conditions as Market Nears Bottom

Bitwise Chief Investment Officer Matt Hougan said STRC’s volatility is a typical feature of the late stage of a crypto cycle and that the market is approaching a bottom. According to PANews, Hougan said STRC effectively allocates Bitcoin using capital that expects high returns and low volatility, while Bitcoin does not have those characteristics.

Hougan said this mismatch needs to be cleared out of the system before a bottom can form.

He also said Strategy’s role in the Bitcoin market has shifted from a one-way buyer to a participant that can trade more flexibly depending on market conditions.

Hougan added that institutional investors are expected to take a larger role, saying global banks, pension funds, and sovereign wealth funds are gradually entering the market. He cited signs including Morgan Stanley launching a proprietary Bitcoin ETF and Wells Fargo adding Bitcoin to model investment portfolios.