Bitcoin prices are at their worst levels in years, falling by double digits over the past week. Although the top cryptocurrency appears to have rebounded strongly over the past day, a 14% one-day correction on Thursday, February 5th was an event that instilled fear in the market, and rightly so. In a new report, renowned experts set out to come up with answers to the questions currently swirling around Bitcoin prices.
Crypto bear market ends in exhaustion, not excitement — Bitwise CIO
On Friday, February 6th, Bitwise Chief Investment Officer Matt Hogan answered questions about the current structure and outlook for the Bitcoin price. The same senior executive wrote about why the market is falling and what could help BTC price reach the bottom if the market falls further.
Hogan began by pointing out that there is no single reason for the decline in the cryptocurrency market, and that multiple factors are often involved. In this latest correction, the Bitwise CIO cited around six factors, including the four-year cycle front, the loss of “high-profile investors” in AI and metals, and the infamous October 10 liquidation event.
It is important to note that the market and Bitcoin price behavior has not been the same since the massive leveraged crash on October 10, 2025. This historic liquidation event came in the wake of US President Donald Trump’s stunning announcement of 100% tariffs on all Chinese goods.
Other factors highlighted in Bitwise’s report include concerns surrounding Kevin Warsh as Federal Reserve Chairman, concerns about quantum computing, macro risk-off sentiment, and more. It can be said that the Bitcoin and crypto markets are not the only victims of this change in sentiment, especially since the mineral and stock markets have also fallen significantly.
The good news, Hogan said, is that the selloff appears to be showing signs of drying up.
Bitwise CIO writes:
On-chain data shows that long-term holders have stopped selling aggressively, and some holders have started nibbling at the edges. Open interest on Bitcoin derivatives exchanges has fallen to levels last seen in 2024.
Hogan went on to say that as history passes, the current structure could see Bitcoin prices fall further. However, investment experts also believe that the premier cryptocurrency is a more mature asset and is unlikely to experience a 77% correction like in the past.
Although he was unable to pinpoint the exact time when the Bitcoin price will hit bottom, the Bitwise CIO revealed that time is simply the trigger for things to turn around. “Crypto bear markets tend to end in exhaustion rather than excitement,” Hogan concluded.
Bitcoin price overview
As of this writing, the price of BTC is around $67,834, reflecting an increase of over 4% in the past 24 hours.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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