Bitcoin’s drop below $100,000 — its lowest point since June — has stirred fresh anxiety among investors. Yet two prominent market voices remain confident about the cryptocurrency’s long-term trajectory.
Matt Hougan, chief investment officer at Bitwise, believes the decline signals “peak retail capitulation,” not the start of a major downturn. Speaking with CNBC’s Crypto World on Tuesday, Hougan said, “Crypto retail is in max desperation. We’ve seen leverage blowouts… the market for crypto-native retail is more depressed than I’ve ever seen it.”
Despite the pessimism, Hougan noted several indicators suggesting the sell-off may be nearing its end. “When I talk to institutions or financial advisers, they’re still eager to allocate to an asset class that, when viewed over the past year, continues to deliver strong returns,” he said.
He added that once retail selling pressure subsides, institutional inflows could spark the next rally. “Bitcoin could easily finish the year at new all-time highs,” Hougan predicted, suggesting a potential target range between $125,000 and $130,000.
Arthur Hayes: U.S. Debt Will Force “Stealth QE” and Ignite Bitcoin Rally
Former BitMEX CEO Arthur Hayes believes that the next Bitcoin surge will be fueled not by hype, but by structural liquidity pressures within the U.S. financial system.
In a Nov. 4 essay, Hayes argued that the U.S. government’s growing dependence on debt issuance will eventually compel the Federal Reserve to expand its balance sheet — a move he described as “stealth QE.”
Under this scenario, the Fed would inject liquidity into the system via its Standing Repo Facility, indirectly supporting Treasury markets without officially labeling the move as quantitative easing.
“If the Fed’s balance sheet grows, that is dollar-liquidity positive and ultimately pumps the price of Bitcoin and other cryptos,” Hayes wrote.
He explained that this quiet form of monetary expansion — driven by rising government borrowing and the need to stabilize funding markets — could reignite the next major Bitcoin bull run.
Meanwhile, on Tuesday, Mosaic Asset and The Kobeissi Letter reported that Bitcoin has officially entered bear market territory, having fallen more than 20% from its all-time high on October 6.
Other market participants, however, warned that the downturn might not be over.
Investor Ted Pillows described the current price action as a “free fall,” cautioning that Bitcoin could revisit the $92,000 CME gap if the $100,000 support level fails to hold.
