In a recent post on X, Matt Hougan, Chief Investment Officer at Bitwise, stated, “Throughout Bitcoin’s history, various mechanisms have artificially locked in future demand and placed it in a ‘lockbox’. The biggest culprit is GBTC, which has locked in billions of dollars of future demand as hedge funds take advantage of premium trading. But there are other mechanisms as well, including the Mt. Gox bankruptcy and the shutdown of Silk Road. These ‘lockboxes’ have kept the price of Bitcoin at higher levels than what would be seen in a freely flowing market. However, now we are unlocking these assets due to ETFs and the passage of time. The result is that Bitcoin needs to attract billions of dollars in new demand to maintain its current state.”
Hougan stated, “I believe we have solved much of the excess supply. For example, we have seen the assets of GBTC stabilize. But we haven’t completely solved it yet, which puts pressure on today’s market. It will be exciting when we fully solve it and see new demand directly translate into price increases.”
Tags:
Bitwise
Matt Hougan
Bitcoin
Source link:
https://x.com/Matt_Hougan/status/1805250331149771128
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Original article link:
https://www.bitpush.news/articles/6907009
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