Bitwise: The bullish sentiment of institutions is correct. In the long term, buying into altcoins now could yield considerable returns

According to The Block, Bitwise Chief Investment Officer Matt Hougan said in a report to clients on Wednesday that there is currently an interesting dichotomy between institutional investors and retail investors in the cryptocurrency field. On one hand, institutional investors are historically the most optimistic about cryptocurrencies, while retail investors are falling into despair. Investment professionals now see cryptocurrency as a field where institutional capital is allocated through ETFs in record amounts. Washington has gone from being one of the "biggest threats" to this industry to becoming one of its biggest supporters under Trump's administration, and nation-states may further adopt this industry.

However, for retail investors, it's almost like living in another reality," Bitwise's own on-chain sentiment score shows that it is currently one of the lowest readings ever. This index aligns with other sentiment indicators and the overall atmosphere of "Crypto Twitter", with retailers feeling sad because their increased altcoin investments have performed poorly compared to Bitcoin, with only a few exceptions.

Matt Hougan stated that he firmly believes institutions are correct; so far this year ETFs and corporations have purchased over 100,000 BTC while only 18,000 BTC were mined. In addition, looking at long-term trends altcoin allocation is stronger than ever before but more complex due to regulatory agendas clarifying stablecoins as a national priority along with increasing confidence among institutions which will inevitably push DeFi applications towards mainstream adoption - its impact will be self-evident and unstoppable.