Asset manager Bitwise argues that Bitcoin's nine-month decline has obscured underlying strength in the industry's fundamentals. The firm contends that growing institutional adoption, continued corporate treasury buying, and improving market infrastructure have positioned the sector for a potential rebound, even as bearish sentiment dominates. Bitwise acknowledges the headwinds, pointing to record outflows from spot Bitcoin exchange-traded funds and weak investor confidence as signs of the current downturn's severity. Despite these challenges, the company frames the present moment as the low point before a recovery, invoking the phrase 'darkest before the dawn.' The assessment reflects a broader debate among market participants over whether Bitcoin has reached a cyclical bottom or faces further declines. Bitwise's optimism rests on the view that structural developments supporting the market remain intact regardless of short-term price action and prevailing negative mood.
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