Bitwise's Chief Investment Officer views the sharp decline in STRC (Strategy Co. stock) as a sign that leverage washout in the crypto market is nearing completion. Strategy has shifted from net buying Bitcoin to dynamic trading. The market is in a bottom-clearing phase, with institutional capital expected to drive the next bull run, likely starting in autumn.
Bitwise Chief Investment Officer has stated that the sharp drop in STRC (Strategy Company's stock) signals the final stage of leverage deleveraging in the crypto market. He believes that such high-leverage bellwether assets typically crash when the liquidation process is near its end, and STRC's decline fits this pattern.
At the same time, Strategy has shifted its Bitcoin strategy from long-term unilateral accumulation to active trading – buying and selling dynamically. This change removes a steady buyer from the market temporarily but helps clean out speculative excess more thoroughly.
The current crypto market is undergoing a bottom-clearing phase, where assets inflated by leverage are being unwound. Bitwise CIO expects that once deleveraging is complete, institutional capital will step in as the main incremental buyer for Bitcoin, likely igniting a new bull market in autumn.
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