The crypto market looks beaten down again, but one veteran investor says that may be the exact signal to stay calm.

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Bitwise Chief Investment Officer Matt Hougan believes Bitcoin’s deep sell-off — now dragging prices below $102,000 for the first time since the last five months — is more about panic than fundamentals.

Retail Sentiment At ‘Max Desperation’

Hougan told CNBC this week that small traders are hitting a breaking point. “It’s almost a tale of two markets,” he said, describing what he sees as “max desperation” among retail investors after months of heavy losses and leverage blowouts.

He called the mood the most depressed he’s ever witnessed in crypto. For him, that level of hopelessness might be the final stage before the market finds its footing again.

Institutional Flows Continue To Matter

While smaller traders are backing off, larger investors appear to be sticking around. According to reports, financial advisors and institutional funds are still adding to positions through Bitcoin ETFs such as iShares Bitcoin Trust (IBIT), Fidelity Wise Origin Bitcoin Fund (FBTC), and Grayscale Bitcoin Trust (GBTC).

The weekly inflows have slowed since the middle of the year, but they remain positive — a sign, Hougan says, that big money hasn’t lost faith.

Hougan argues that this split between retail panic and institutional confidence could shape how the market recovers.

“When I talk to advisors and institutions,” he said, “they’re still excited to allocate to an asset class that, if you zoom out, is delivering strong returns over the past year.”

Solana Staking Interest And ETF Activity

The growing influence of crypto funds goes beyond Bitcoin. Hougan said Bitwise’s new Solana Staking ETF (BSOL) pulled in more than $400 million in its first week before dropping nearly 20% since launching on Oct. 28.

Even so, he sees strong appetite for professionally managed crypto exposure among investors who prefer structured products over direct trading.

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Not everyone agrees on how fast a rebound might come. Strategy CEO Michael Saylor recently predicted Bitcoin could hit $150,000 by year end — a call Hougan considers bold but not impossible.

He said a move toward $125,000 or even $130,000 is achievable if selling pressure keeps fading and demand from institutions grows.

For now, the market still feels fragile. Hougan admits there could be more downside before prices turn around, but he thinks the end of the sell-off is close.

Retail sentiment may be collapsing, yet institutional optimism is holding firm — and that, he says, could be the fuel for Bitcoin’s next rally.

Featured image from Unsplash, chart from TradingView