Advisors see pullbacks as buying opportunities
I was reading through some recent market commentary, and it seems financial advisors are staying surprisingly steady on crypto. Matt Hougan from Bitwise Asset Management shared some observations after meeting with advisors this week. The general feeling is that those who haven’t invested yet see recent price drops as a chance to get in, while those who already have positions are planning to hold through the volatility.
It’s interesting how different groups react to market movements. Traditional investors might get nervous when prices dip, but crypto-native investors – the ones who’ve been in this space for years – seem to have a different perspective. They’re not as reactive to short-term price changes. Their decisions seem tied more to long-term conviction than immediate momentum.
Crypto-native investors still control the market
Hougan made a point that really stuck with me. He said we’ve spent too much time thinking about ETF investors as the main market movers, when actually crypto-native investors still dominate. These are the people who’ve been holding through multiple cycles, through bear markets and bull runs.
Their behavior has a bigger impact on prices than we sometimes realize. Even with all the new ETF money coming in, the long-term holders set the tone. They influence market structure, liquidity patterns, how volatility gets absorbed. It’s their sentiment that really matters.
Market dynamics shifting but fundamentals remain
What’s happening now is a bit of a reality check, I think. We got excited about ETFs bringing in new capital, and they have, but they’re not calling the shots. Not yet anyway. The crypto market still has its own rhythm, its own internal logic.
Advisors seem to understand this. They’re not panicking about short-term price movements. Instead, they’re looking at the bigger picture. Some are using dips to build positions gradually. Others are holding what they have, waiting to see how things develop.
It’s a more measured approach than you might expect given recent volatility. But then again, maybe that’s the point. After several cycles, people in this space have learned that knee-jerk reactions rarely pay off. The market has its ups and downs, but the underlying trend has been upward over longer timeframes.
A more mature market perspective
What strikes me is how the conversation has evolved. It’s less about quick profits and more about strategic positioning. Advisors are thinking about time horizons, about conviction levels, about how different types of investors interact with the market.
They’re recognizing that crypto markets have their own dynamics that don’t always follow traditional patterns. The influence of long-term holders, the way liquidity moves, how sentiment spreads through different investor groups – these things matter.
And perhaps that’s the real story here. Not just that advisors are bullish, but that they’re approaching crypto with a more nuanced understanding of how these markets actually work. They’re looking beyond surface-level price movements to the underlying forces that drive them.
