The crypto market has spent weeks under pressure. Prices keep sliding and traders continue to react with fear. Yet a different tone emerged this week from Bitwise CEO Hunter Horsley. He said the downturn may be closer to its end than many expect. Horsley shared his view after a fresh wave of sell-offs. The Crypto Fear and Greed Index also dropped to 15, marking one of its lowest readings of the year.
Horsley Points to New Market Structure
Horsley argued that the recent decline does not change the bigger picture. He said crypto fundamentals look stronger than ever and believes the old four-year cycle no longer guides the market. In his view, new conditions now shape how traders behave.
He linked this shift to major changes in the United States. The launch of Bitcoin ETFs opened the market to more institutions. A more supportive political environment also expanded participation. Horsley said these forces created a new market structure with different incentives.
He stated that crypto may have already spent six months in a bear phase, adding that the downturn may be nearly finished as long-term indicators remain firm. He stressed that new players now drive trading activity across several asset classes.
Horsley also dismissed fears tied to short-term sentiment. He said the low index reading reflects emotion, not fundamentals. He continued to say that the setup for crypto looks stronger today than in previous downturns. His view presents a clear contrast to the current mood.
Analysts Track Market Stress and Liquidity Trends
Other voices described a more cautious picture. CoinBureau founder Nic Puckrin noted a notable correction this cycle. He said the latest 25% drop is smaller than past declines, yet fear levels remain unusually high. The index hit its lowest point since February as prices stayed below earlier highs.
Bitcoin also dropped to a six-month low. Some analysts now think a fall toward $86,000 remains possible if conditions weaken further. Traders continue to monitor price levels that could trigger new selling.
Investor Robert Kiyosaki linked the downturn to limited liquidity. He said risk assets often struggle when credit tightens. He also argued that crypto and metals may rise once liquidity increases. The discussion centered on how tightening or easing the money supply affects valuations.
The Federal Reserve added more uncertainty. The central bank has begun cutting interest rates. However, only 46% of traders expect another cut in December. This gap reflects uncertainty about the Fed’s direction in the final quarter of the year.
Horsley’s message stands apart from this caution. He pointed to regulatory clarity that now supports institutional activity. He also mentioned the scale of ETF infrastructure and rising participation from new segments. These factors, he argued, show a market that no longer behaves like earlier cycles.
He suggested that investors may be misreading the current trend. A focus on short-term fear may hide broader changes across the industry. He said these changes may support a different trajectory as the next cycle forms. His comments drew attention because they challenged the dominant mood.
The debate now focuses on how long fear will last. Traders watch liquidity, rates, and incoming data. Analysts also study how new market structures might change old patterns. Horsley believes those changes are already reshaping the path ahead.