{"id":91902,"date":"2025-12-05T20:20:46","date_gmt":"2025-12-05T17:20:46","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=91902"},"modified":"2025-12-10T12:13:47","modified_gmt":"2025-12-10T09:13:47","slug":"bitwise-identifies-two-key-bearish-factors-for-bitcoin","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/bitwise-identifies-two-key-bearish-factors-for-bitcoin\/","title":{"rendered":"Bitwise Identifies Two Key Bearish Factors for Bitcoin"},"content":{"rendered":"

The greatest threats to the leading cryptocurrency in the current market cycle are a potential bubble in the AI sector and US digital asset regulation, according to top executives at Bitwise, reports DL News<\/a>.<\/p>\n

Andr\u00e9 Drago\u0219, head of research at the European division, highlighted during an investor meeting the largely inflated valuations of AI companies. In his view, stock prices are detached from fundamental indicators.<\/p>\n

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\u201cSome may be justified, but purely from a quantitative assessment, they are too high,\u201d concluded the expert.<\/p>\n<\/blockquote>\n

An AI sector bubble could trigger a macroeconomic shock, prompting a flight from risky assets like cryptocurrencies. Bitcoin’s historical correlation with tech companies could amplify the potential effect.<\/p>\n

Bitwise’s Chief Investment Officer Matt Hougan expressed primary concern over possible changes in US regulatory policy.<\/p>\n

In July, President Donald Trump signed<\/a> the GENIUS Act, establishing rules for stablecoins<\/a>. The Senate is considering a market structure act aimed at defining a broader set of industry norms.<\/p>\n

Hougan believes the document is likely to stall if not signed before the 2026 midterm elections. After a presumed Republican loss of majority, even achieved \u201cregulatory successes could be undone,\u201d he added.<\/p>\n

However, Hougan assessed the likelihood of such a scenario at 20%.<\/p>\n

Concerns Are Justified<\/h2>\n

Bitwise’s investment director’s concerns were echoed by renowned industry lawyer Jake Chervinsky. Disagreements in the Senate are so significant that no amendments are expected to be approved by the end of the year, he believes.<\/p>\n

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1\/ Market structure bill, December update<\/p>\n

The Senate is working very hard to get this done, but the closer they get, the more complex it becomes. I’m not betting on a markup this month.<\/p>\n

Three issues are holding up the bill: stablecoin yield, conflicts of interest, and DeFi \ud83e\uddf5<\/p>\n

\u2014 Jake Chervinsky (@jchervinsky) December 4, 2025<\/a><\/p><\/blockquote>\n