Bitwise CIO: Cryptocurrencies are undergoing a painful transformation from momentum trading to "contrarian betting".

CoinFeed reported on June 3rd, citing The Block, that Bitwise Chief Investment Officer Matt Hougan stated that as the digital asset market underperforms amid rising stock markets and enticing opportunities like AI stocks, cryptocurrencies are increasingly becoming a form of "contrarian betting." Hougan pointed out that when the Nasdaq 100 is up 43% year-over-year, who needs cryptocurrencies? AI has absorbed all the attention, and cryptocurrencies are undergoing a painful transformation from momentum trading to "contrarian betting." However, this doesn't mean cryptocurrencies are disappearing; rather, the investment logic has shifted, now requiring a long-term perspective and a focus on fundamentals, attracting different types of investors. Hougan also noted that this crypto winter is different from previous ones; investors haven't rotated to so-called safer assets like Bitcoin, but rather turned to smaller assets with solid fundamentals.