Bitwise CIO Matt Hougan has compared Bitcoin's current sideways price movement to a 'quiet IPO' phase, a period of consolidation often seen in traditional startups before significant growth. According to Hougan, this phase, which can last 8–16 months, is not a sign of weakness but rather a natural part of the growth cycle, as early investors and employees may cash out, leading to temporary price stagnation.
Hougan also noted that Bitcoin differs from traditional IPOs as it does not require consistent revenue to increase in value. He highlighted that since the launch of spot Bitcoin ETFs in January 2014, Bitcoin's reduced volatility has made it a safer long-term investment. Institutional adoption and broader acceptance are now seen as crucial for Bitcoin's future growth.
Bitwise CIO Compares Bitcoin's Sideways Movement to 'Quiet IPO' Phase
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