Matt Hougan, chief investment officer at Bitwise, states that the downturn in the crypto market signifies the end of the meme coin boom but remains optimistic about Bitcoin and decentralized finance (DeFi).
Current Situation in the Crypto Market
With Bitcoin plunging to a three-month low below $90,000, the crypto market saw over $1.5 billion wiped out in 24-hour liquidations. Meme coins, including Dogecoin, Pepe, and TRUMP, were among the hardest hit, each dropping more than 14%, while MELANIA was down over 25%.
Matt Hougan's View on Meme Coins
Matt Hougan asserts that the meme coin frenzy, witnessed earlier this year, is nearing its end. He suggests that this could occur within the next six months. Hougan highlighted that incidents such as the Lazarus Group using meme coins to launder stolen ETH are contributing to the negative sentiment on the market.
Prospects for Bitcoin and DeFi
Matt Hougan remains optimistic about Bitcoin, stablecoins, and tokenization. He believes that the institutional adoption of Bitcoin and a potential rebirth in decentralized finance (DeFi) could replace the meme coin frenzy on the market. However, he also notes that until these possibilities are realized, the market will remain under pressure.
Despite the current downturn and negative sentiment surrounding meme coins, Matt Hougan remains confident in the bright future for Bitcoin and the revival of DeFi.
