Bitwise: Extreme anxiety in the crypto market may indicate that it is nearing the bottom.

Bitwise Chief Investment Officer Matt Hougan points out that investors who bought in at the 2018 lows have seen returns of approximately 2000%, while those who entered at the 2022 lows have seen gains of around 300%. For long-term investors, the firm believes the current disconnect between prices and industry developments is a replay of these specific cycles. Hougan argues that the world is becoming increasingly digital and requires non-fiat currencies, citing the rise of stablecoins, the development of tokenization, and the emergence of prediction markets and "AiFi" as examples of a maturing ecosystem. While current prices don't reflect these developments, the continued convergence of Wall Street and blockchain technology suggests that fundamentals will eventually drive the next rally. Bitwise identifies several potential catalysts for a recovery, including the potential passage of the Clarity Act, a shift in market sentiment towards risk appetite, rising expectations of interest rate cuts, and technological breakthroughs at the intersection of AI and crypto. Without a sudden positive shock, Bitwise expects the market to "bottom out." (CoinDesk)