Crypto markets continued to sell off on Friday after more than $2 billion in leveraged positions were flushed out in the past 24 hours, but some institutional analysts say signs of a bottom are emerging, even if more pain is possible.

Speaking on CNBC, Bitwise CIO Matt Hougan said the sell-off is being driven by a classic clash between short-term fear and long-term conviction.

“It’s a tale of two markets,” he said. “Short-term investors see global risk-off sentiment, the DAT trade unwinding, and fallout from the October 10 volatility event. But long-term investors are starting to nibble at these prices.”

Hougan said several of the world’s largest allocators, including the Harvard endowment and Abu Dhabi’s sovereign wealth fund, are…