Bitwise Investments has described the current sideways movement of Bitcoin as the beginning of a “quiet IPO” for the cryptocurrency, according to CIO Matt Hougan.
Hougan referred to research by macroeconomist Jordi Visser, who analyzed the reasons behind Bitcoin’s slow price dynamics despite strong inflows into ETFs, regulatory progress, and growing institutional demand.
According to Visser, a “quiet IPO” represents a period of relative calm—typically 8–16 months—before the asset resumes upward momentum.
Hougan explained: “Sideways movement doesn’t necessarily signal anything wrong. Often it happens when founders and early adopters cash out. Those who took enormous risks on a startup see their investments pay off and enjoy massive returns.”
The CIO noted that only after the balance between early sales and purchases stabilizes can Bitcoin resume its growth. Market participants sometimes misinterpret this sideways phase, panicking and selling positions prematurely.
“Early investor sales don’t mark the end of the story. It’s simply a new phase,” Hougan emphasized. Unlike traditional companies, Bitcoin doesn’t need to maintain consistent revenue to grow—it simply evolves with adoption.
He highlighted that once early investors complete their sell-offs, the main driver for Bitcoin’s rise—from a $2.5 trillion market cap toward the scale of gold at $25 trillion—will be widespread adoption.
Hougan added, “From a long-term perspective, dips in Bitcoin prices are a blessing. They provide an opportunity to acquire more coins before prices rise again.”
Maturing Market
As Bitcoin transitions from early enthusiasts to institutional holders, and as it matures as a technology, it faces fewer existential risks than a decade ago. Since the launch of spot Bitcoin ETFs in January 2014, volatility has decreased, though returns have moderated. Lower volatility, however, enhances its attractiveness as a long-term investment.
Hougan concluded: “The days when Bitcoin represented just 1% of a portfolio are over. Investors should increasingly consider 5% as a starting point.”
Analysts also note that Bitcoin’s recent correction below $100,000 aligns with historical market patterns and is moderate in the context of the current cycle.
