Rare Reversal in Crypto Market Sentiment

Hunter Horsley, as CEO of Bitwise, has publicly analyzed institutional entry signals multiple times during the bull-bear transition of 2021-2022, previously advocating for the launch of Bitcoin ETF products. This observation continues his long-term perspective on the divergence of retail and institutional sentiment.

In terms of capital flow, traditional financial advisors are channeling client funds into the crypto market through compliant avenues (such as ETFs and custody services), positioning themselves at lower levels during extreme pessimism on Twitter. Institutions like Bitwise are using this window to expand their asset management scale. As the influence of early players like Elon Musk diminishes, Wall Street capital is beginning to take over pricing power.

Similar to the disappointment of retail investors leaving after the 2017 ICO frenzy and the gradual entry of institutions in 2019-2020, the crypto industry is currently transitioning from retail dominance to control by institutions and advisors, with clearer regulations accelerating this transformation.

Essentially, this represents capital concentration: funds are shifting from high-emotion retail investors to low-emotion professional advisors. The mechanism is based on the maturity of compliant products and price corrections providing a safety margin, allowing traditional wealth managers to include crypto in their portfolios, thus transforming the market from speculation-driven to long-term holding structures.

ABAB News · Law of Cognition

When the faithful despair, outsiders begin to enter.
The true bottom is not when everyone is bearish, but when smart money starts to be bullish.
The day of market role reversal is often the starting point of a cycle switch.