Bitwise CIO: Bitcoin dropping to $63,000 is due to long-term holders cashing out, not market manipulation

February 27 News: Since February, Bitcoin’s price has rapidly fallen from nearly $90,000 to about $63,000, leading to speculation that “institutions are deliberately suppressing” the market. In response, Matt Hougan, Chief Investment Officer of Bitwise Asset Management, stated that this round of Bitcoin selling is more likely due to long-term holders taking profits rather than manipulation.

Hougan pointed out that many early investors have already realized substantial gains during this rally. When the price approached $90,000, some funds choosing to cash out is normal behavior. Long-term holders reducing their positions can release a large supply into the market in the short term, exerting downward pressure on prices. This phenomenon is not uncommon after previous bull markets.

On-chain data also supports this view. Data from Glassnode and CryptoQuant show that since late January 2026, the transfer volume of dormant Bitcoin held for over a year has increased by about 15%. The resurgence of activity in wallets that have been inactive for a long time is often seen as a signal of seasoned investors periodically taking profits.

Hougan believes that the market may be approaching a cyclical bottom. Historical data shows that during similar corrections in 2018 and 2022, after long-term holders released selling pressure, Bitcoin rebounded by an average of about 35% within roughly two months.

Against the backdrop of Bitcoin’s sharp price fluctuations, the behavior of long-term holders, changes in on-chain data, and the pattern of bull market corrections are becoming important indicators for assessing market trends.