Crypto Investors Shift From Market Cap to Stock-Picking Strategy, Says Bitwise CEO

Hunter Horsley, CEO of Bitwise Investments, revealed that institutional investors are moving away from focusing solely on market capitalization when investing in cryptocurrencies. Instead, they are adopting more sophisticated strategies akin to stock-picking, analyzing individual projects based on their unique fundamentals and value propositions. This shift reflects a maturation in the crypto market, which is evident from the increasing adoption by both institutional players and retail investors. Despite this progress, many still rely heavily on market cap as a primary metric. The shift is significant as institutions recognize the diversity in the crypto space, akin to traditional stock markets. Horsley highlighted that this new approach aligns with the current macroeconomic environment, where higher interest rates mean only assets with solid fundamentals are likely to thrive. Bitcoin's dual identity as a store of value and a payment network was also discussed, suggesting that for it to serve as a transactional medium, it must first be widely accepted as a valuable asset. While a bear market may be on the horizon, Horsley believes its severity could be less than in previous cycles due to the market's evolving landscape.

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