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Bitcoin (BTC) 
$103,554 is priced at $84,100 as of this writing, with increasing volatility expected on Fed evening. XRP Coin emerged as a daily winner amidst announcements signaling the end of its legal battle. However, it remains challenging to assert that altcoins are experiencing a genuine revival. What are Hougan’s expectations?
Bitwise Crypto Investment Insights
Bitcoin’s price movements are highlighted by Matt Hougan, who discusses its frustrating performance during crises. This was also evident when inflation surged, and the Fed began raising interest rates. During those times, BTC failed to act as a hedge against inflation, and unfortunately, it is not delivering the desired performance for risk-averse investors today.
“People buy Bitcoin as a hedge, but when markets fluctuate, it tends to drop in the short term.
We saw this last week; rising tariff concerns triggered sell-offs in both the stock market and Bitcoin. My colleague Juan examined all instances in the last decade where the S&P 500 fell more than 2% in a day. On average, during these pullbacks, Bitcoin actually declined more than the S&P 500—roughly 2.6%.” – Hougan
The narrower your view window, the more meaningless your observations become. The study further reveals that if you continue to invest or purchase more after declines, you perform significantly better.
“On average, following these sharp pullbacks, Bitcoin has risen at a staggering rate of 190% in the subsequent year, outperforming all other assets remarkably. I call this model ‘Dip First, Rip Later,’ and it has historically been one of the most consistent patterns in crypto.”
Bitwise continues to uphold the belief that BTC will reach $1 million by 2029, as noted in their latest report.
Tariffs and Cryptocurrencies
We are currently witnessing the effects of tariff discussions that trigger economic uncertainty on Bitcoin’s price. Matt Hougan addresses this issue and shares a recent assessment by NYDIG on the topic.
“What does Bitcoin have to do with tariff wars? Nothing, aside from being a globally accessible asset with high liquidity that trades 24/7. Bitcoin will benefit from the increasing political and economic disorder created by management.”
NYDIG argues that tariffs inject uncertainty into the market, creating short-term challenges for Bitcoin and other liquid assets, which increases perceived risk and discount factors. However, Hougan maintains a long-term view of Bitcoin as a protective tool against political and economic uncertainty, expecting a decline in the short term but a rise in the long term.
BRN analyst Valentin Fournier refers to a recent statement by the Executive Director of the Presidential Crypto Working Group, Bo Hines, who said, “We want to accumulate as much Bitcoin as possible without requiring taxpayer contributions.”
