Bitcoin News Update: How the Evolving Crypto Market Structure Indicates the Conclusion of a Downtrend

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Bitcoin News Update: How the Evolving Crypto Market Structure Indicates the Conclusion of a Downtrend

Bitget-RWA2025/11/18 06:08

By:Bitget-RWA

- Bitwise CEO Hunter Horsley predicts the crypto bear market nears its end, citing a "new market structure" driven by U.S. regulatory clarity and Bitcoin ETF launches. - Despite Bitcoin hitting a six-month low and $2B in crypto fund outflows, Horsley highlights institutional infrastructure and political support as long-term growth drivers. - BTC Inc's 140% revenue growth contrasts with a 60% drop in small altcoins, illustrating crypto ecosystem resilience amid broader risk-off sentiment. - JPMorgan's $94k

Hunter Horsley, CEO of Bitwise Asset Management, has expressed optimism despite the persistent crypto bear market, suggesting that the industry is approaching the conclusion of a six-month slump and that its long-term prospects remain strong. His perspective stands in stark contrast to prevailing market attitudes, as

the Crypto Fear and Greed Index dropped to 16

, a reading that indicates extreme fear—emphasizing the divide between the confidence of institutional players and the apprehension of individual investors.

According to Horsley, the conventional four-year cycle of the crypto market has shifted, now replaced by a "new market structure" influenced by advancements in U.S. regulation and the introduction of

Bitcoin

ETFs. He pointed out that the industry now enjoys improved institutional infrastructure, greater political backing, and more transparent regulatory guidelines, laying the groundwork for a path that diverges from previous cycles

according to analysis

. This outlook is consistent with broader industry movements, such as the increasing use of Bitcoin for portfolio diversification, even though crypto funds experienced $2 billion in outflows last week,

according to CoinShares

The bearish sentiment is further highlighted by Bitcoin reaching a six-month low of $94,590 and falling 20% from its 2025 high.

Analysts attribute the slump

to waning enthusiasm for U.S. crypto-friendly policies, increased macroeconomic caution, and the gradual exit of institutional investors, including ETF participants. At the same time, limited liquidity has intensified price volatility, with

order-book depth remaining structurally weaker

since the market crash in October. The Federal Reserve’s unpredictable policy direction adds another layer of uncertainty, as

only 44% of traders anticipate

a rate cut in December, highlighting differing views on the central bank’s next steps.

Bitcoin News Update: How the Evolving Crypto Market Structure Indicates the Conclusion of a Downtrend image 0

Elsewhere, BTC Inc, a company specializing in Bitcoin media and events,

reported strong preliminary financial results

for the nine months ending September 30, 2025, achieving $61.9 million in revenue and $23 million in EBITDA—a 140% increase year-over-year—even as its stock dropped 4.3% after a leadership change. The company’s performance underscores the adaptability of the broader crypto industry, even as smaller altcoins experience sharper losses.

A MarketVector index

tracking the lowest 50 of the top 100 digital assets has plunged 60% this year, illustrating a strong risk-off mood.

Horsley’s contrarian optimism is not without historical precedent. Past cycles show that periods of deep pessimism often come before recoveries, with bear markets typically finding a bottom after declines of 30–40%.

JPMorgan analysts recently estimated

that Bitcoin could bottom out at $94,000, with a possible rise to $170,000 within a year. Nonetheless, immediate obstacles remain, such as the ongoing reduction of $140 billion in open bitcoin futures and options contracts—

a far cry from

the $220 billion peak seen in October.

As the market navigates ongoing turbulence, Horsley’s message highlights an important point: while pessimists may seem insightful during downturns, it is often the optimists who endure the noise and benefit in the long run. With clearer regulations, increased institutional involvement, and a more mature market structure, the next phase for crypto may depend on balancing prudence with confidence.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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