Bitcoin Rebounds After Inflation Dip, Matt Hougan Predicts Major Altcoin Opportunity Ahead
After a sharp drop to above $94,000 earlier on Wednesday, Bitcoin (BTC) managed to recover and climb to $97,500, driven by unexpected U.S. inflation data. The brief decline in cryptocurrencies was in response to inflationary figures, which were stronger than expected, and attracted market attention. But Bitcoin quickly turned around and showed elasticity as it rebounded to higher prices.
In addition, in a testimony the second day before Congress, Fed Chairman Jerome Powell said the latest CPI data suggests that the central bank is close but still not fully meeting its inflation target.
A sharp contrast between investors
Recently, Matt Hougan was in his notes to his clients shared The crypto structures between institutions and retail investors are in sharp contrast. He noted that while institutional sentiment is the most bullish sentiment he has ever seen, retail investors are desperate. He noted that retail investors discouraged because AltCoins was underperforming.
“Retail cryptocurrencies like speculating on altcoins, and the lack of “altcoin season” makes them frustrated,” he shared. Hougan believes institutions are making the right move. While it’s easy to stay optimistic about Bitcoin, ETFs and companies have purchased over 100,000 BTC this year, he believes that the future of AltCoins looks stronger than ever in the long run.
Altcoin is booming quickly? Matt Hougan sees the opportunity
Although Hougan acknowledged that the altcoin market is now more complex, apart from a brief “memecoin” boom, the United States focuses on stable trends, but there are no major new things like defi or ICO in previous cycles. Trends, besides the shorter “memecoin” boom, institutional confidence, he believes the industry will bring Defi to a wider audience.
“In a year or two, my guess is that you don’t have to squint to see the transformation in Altcoins; the impact will be self-evident. And overwhelming,” he pointed out. “Retail sentiment is terrible in cryptocurrencies right now, and to me, it shows the opportunity.”
