WisdomTree Executive Views Crypto Dip As Healthy Correction

Bitcoin fell to $93,000 on Friday, prompting speculation about the duration of the decline. Ryan McMillin, a portfolio manager at WisdomTree, a company offering a Bitcoin ETF, characterized the downturn as a healthy correction.

McMillin addressed questions from Cointelegraph at the New York-based The Bridge conference. He stated, “I think the recent price drop in Bitcoin is a temporary adjustment within the current cycle. It’s not a trend change to me, but rather a healthy correction phase. Bitcoin’s underlying fundamentals remain strong, so I don’t see this as a lasting trajectory.”

McMillin identified three primary factors contributing to the recent price movement. Firstly, he cited significant sales from long-term Bitcoin investors. Secondly, he pointed to increasing net outflows from spot Bitcoin ETFs. Finally, he mentioned the rise of global macroeconomic risks.

“There are three main reasons for the downturn,” McMillin explained. Despite the factors, he noted that liquidity from ETFs and institutional investors is absorbing a significant portion of the selling pressure, preventing a market collapse.

“Unlike previous cycles, ETF liquidity and institutional investors are absorbing much of the selling pressure and mitigating a collapse,” he said. He added that he doesn’t believe the situation warrants panic.

Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility.