Latest news with #Bitwise
Yahoo
13 hours ago
- Business
- Yahoo
'This Crypto Cycle Will Be Bigger And Last Longer Than Most People Think,' Bitwise Investment Chief Says
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Bitwise CIO Matt Hougan has suggested that the current cryptocurrency cycle may be different. Hougan first made the argument that the four-year cryptocurrency market cycle could be over in January. Hougan is not the only expert to suggest that the four-year cycle may be over. The cryptocurrency market may be set to deviate from one of its most well-known patterns. Most investors who have dabbled in the space long enough will tell you that the market runs on a four-year cycle of three positive years and a major reset. Depending on who you ask, this cycle is either driven by the Bitcoin halving or broader economic factors. Whatever the case, it has proven true for over a decade. Don't Miss: — no wallets, just price speculation and free paper trading to practice different strategies. Grow your IRA or 401(k) with Crypto – . Following a positive run in 2023 and 2024 and what appears to be a continuation in 2025, the market should be due for a reset in 2026, according to the cycle. But this time is different, according to Bitwise investment chief Matt Hougan. Hougan said Thursday on X that 'this crypto cycle will be bigger and last longer than most people think.' Hougan said this, citing the hostile regulatory environment the cryptocurrency industry faced under the Biden administration. He argued that while applications and use cases were suppressed, the underlying infrastructure continued to improve. 'As we remove the regulatory road blocks [sic], the speed at which things like stablecoins, tokenization, DeFi and DePin will scale will surprise people,' he said. 'It's a coiled spring.' Trending: New to crypto? on Coinbase. It is not the first time Hougan has suggested that the four-year cycle may be over. He made the argument in January, citing President Donald Trump's first cryptocurrency executive order. The order called the digital asset ecosystem 'a national priority,' pushed for steps toward the establishment of a clear regulatory framework and teased the idea of 'a national crypto stockpile.' Hougan said that the executive order, combined with the U.S. Securities and Exchange Commission's more favorable attitude toward the industry, opened the door for trillions of dollars to enter the market. But he noted that it would take at least a year for any significant changes to be felt. 'If it's not until next year that we feel those impacts, will we really have a new 'crypto winter' in 2026?' Hougan mused. 'Will investors go into hibernation even though they know we've entered a new crypto-enabled world?' Still, at the time, Hougan submitted that the cryptocurrency market may not have yet fully overcome the four-year cycle. Citing growing leveraged plays, he said there would likely be a wipeout at some point. However, he stressed that, unlike before, any major pullbacks would likely be 'shorter and shallower.' 'The crypto space has matured; there's a greater variety of buyers and more value-oriented investors than ever before. I expect volatility, but I'm not sure I'd bet against crypto in 2026,' he said. Read Next: A must-have for all crypto enthusiasts: . Hasbro, MGM, and Skechers trust this AI marketing firm — Image: Shutterstock Send To MSN: 0 This article 'This Crypto Cycle Will Be Bigger And Last Longer Than Most People Think,' Bitwise Investment Chief Says originally appeared on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
'Bitcoin Has Never Been More Important': Bitwise CEO Reacts To Elon Musk's Call To Accelerate GDP Growth
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Tesla CEO Elon Musk has recently sparked discussions about U.S. fiscal concerns. Bitwise CEO Hunter Horsley has pitched Musk's remarks as a case for Bitcoin. BitMEX founder and Maelstrom investment chief Arthur Hayes said in November that Trump's economic policies could send Bitcoin's price soaring. The U.S. is in a worrying fiscal situation. Most recently, the country has seen its credit rating downgraded, reflecting concerns over its ability to manage its debt, which now sits at $36.2 trillion as government spending continues to surpass revenue. Amid debates on the best course of action to tackle the problem, Tesla (NASDAQ:TSLA) CEO Elon Musk has pitched his tent behind the Trump administration's policy agenda. According to one pro-crypto market expert, the proposed solution makes a case for Bitcoin. Don't Miss: — no wallets, just price speculation and free paper trading to practice different strategies. Grow your IRA or 401(k) with Crypto – . Musk said last week that accelerating GDP growth was the only way the U.S. could get out of its fiscal quagmire. 'DOGE has and will do great work to postpone the day of bankruptcy of America, but the profligacy of government means that only radical improvements in productivity can save our country,' he said. Musk's sentiments echo those of Treasury Secretary Scott Bessent last week. 'We've inherited a 6.7% deficit-to-GDP, the highest outside war or recession. Our focus is to grow the economy faster than the debt. That's how we will stabilize debt-to-GDP,' Bessent told CNN. Reacting to Musk's remarks, however, Bitwise CEO Hunter Horsley pitched it as a case for Bitcoin. 'Every sign in the world is saying monetary debasement is the road ahead,' he said. 'Bitcoin has never been more important.' Trending: New to crypto? on Coinbase. Horsley's sentiments come as efforts to accelerate GDP growth are likely to involve increasing the monetary supply to stimulate economic activity, which could lead to the debasement of the dollar, an idea that Trump has been open to in the past to boost U.S. exports. Bitcoin proponents argue that the digital asset has the potential to act as a hedge against such currency debasement, similar to gold, due to its scarcity. How much could this fiscal policy benefit Bitcoin? BitMEX founder and Maelstrom investment chief Arthur Hayes said in November that Trump's economic policies could send Bitcoin's price to $200,000 by year-end and $1 million by 2028. According to Hayes, it is the Treasury, not the Federal Reserve, that will help Trump achieve his agenda through Treasury buybacks. The Federal Reserve has so far refused to cut interest rates or engage in any form of quantitative easing despite not-so-subtle pressure from Trump. Hayes compared the current phase of the market to Q3 2022. At the time, markets launched a recovery despite uncertainty and consecutive rate hikes by the Fed. He stated that the Treasury intervened with a buyback program, which brought $2.5 trillion into the markets. At last look, Bitcoin is up over 60% since Trump's election victory, trading at $109,000. Hayes' 2028 price target suggests that the asset has the potential for a 10x surge in the next three years. Read Next: A must-have for all crypto enthusiasts: . 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. Image: Shutterstock Send To MSN: 0 This article 'Bitcoin Has Never Been More Important': Bitwise CEO Reacts To Elon Musk's Call To Accelerate GDP Growth originally appeared on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Bitcoin To See $400B In Inflows From Institutions By 2026, Report Says
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. A recent report suggests that the influx of institutional capital into Bitcoin may only just be starting. The report suggests Bitcoin interest from a heterogeneous group of investors. The anticipated demand for Bitcoin is likely to drive its price significantly higher. For years, Bitcoiners said institutions were coming. Now, without a doubt, they are finally here. Last year, spot exchange-traded funds backed by the asset saw nearly $37 billion in inflows, and several corporations jumped on the Bitcoin treasury strategy popularized by MicroStrategy (NASDAQ:MSTR). A recent report suggests that the influx of institutional capital into Bitcoin may only just be starting. Don't Miss: — no wallets, just price speculation and free paper trading to practice different strategies. Grow your IRA or 401(k) with Crypto – . Bitcoin will see $427 billion in institutional inflows by the end of 2026, according to a UTXO and Bitwise joint report last week. This number includes $120 billion expected to flow in this year, the report said. UTXO and Bitwise analysts expect public corporations to accumulate up to 1 million BTC by the end of 2026. At the same time, they expect the number of Bitcoin treasury firms to double. MicroStrategy already holds over 580,000 BTC with plans to purchase an additional $84 billion worth of BTC through 2027. Meanwhile, firms like Semler Scientific (NASDAQ:SMLR), Metaplanet and GameStop continue to accumulate. There are also new firms emerging, like Twenty One, a venture backed by Tether and SoftBank. Twenty One revealed plans to launch with 42,000 BTC, and its CEO, Jack Mallers, has suggested that the firm plans to surpass MicroStrategy's Bitcoin holdings. Another anticipated driver for the predicted Bitcoin demand is U.S. states. Trending: New to crypto? on Coinbase. Earlier this month, New Hampshire became the first state to enact a law allowing its state treasury to invest in digital assets with market caps exceeding $500 billion. Currently, this includes only Bitcoin. Texas may be set to follow suit, as similar legislation has passed in the state House and is headed to the state Senate for approval of changes made in the lower chamber. If these changes are approved it would go to the desk of Gov. Greg Abbott, who has signaled support for the bill. Meanwhile, Arizona Gov. Katie Hobbs vetoed a bill that would have made the state treasury an active buyer of digital assets, but signed another into law allowing the state to build a reserve from seized digital assets. UTXO and Bitwise estimate that these laws could drive nearly $20 billion in inflows to Bitcoin by the end of 2026. Other drivers of Bitcoin demand highlighted by the joint report include increased adoption by nation-states, sovereign funds and wealth management platforms. These are anticipated to bring in approximately $162 billion, $8 billion and $120 billion in Bitcoin inflows, respectively, by the end of next year. 'We're entering a new era of Bitcoin adoption—one that is not driven by hype cycles, but by balance sheet fundamentals, sovereign strategy, and long-term fiduciary mandates,' UTXO Research Lead Guillaume Girard said in a blog post. As highlighted in the UTXO and Bitwise report, this anticipated Bitcoin demand is likely to drive up the price of the asset significantly higher. While the report does not specify how high the asset's price could surge, Bitwise has previously predicted that Bitcoin will surge to $200,000 by the end of the year. At last look, the asset is trading at $109,000. Read Next: A must-have for all crypto enthusiasts: . 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. Image: Shutterstock Send To MSN: 0 This article Bitcoin To See $400B In Inflows From Institutions By 2026, Report Says originally appeared on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Crypto Insight
3 days ago
- Business
- Crypto Insight
SEC crypto staking guidance ‘major step forward' for US: Crypto Council
The US Securities and Exchange Commission's (SEC) new guidance on cryptocurrency staking is widely seen as a major win for the crypto industry and the push toward globally consistent digital asset regulation. In a May 29 statement, the SEC's Division of Corporation Finance said 'Protocol Staking Activities' such as cryptocurrencies staked in a proof-of-stake blockchain 'don't need to register with the Commission transactions under the Securities Act.' The agency's new guidance marks a 'major step forward' for the US cryptocurrency industry, said Alison Mangiero, head of staking policy at the Crypto Council for Innovation. 'The SEC has now recognized what we've long argued: Staking is a core part of how modern blockchains operate, not an investment contract,' she told Cointelegraph. 'That clarity is critical.' Crypto industry watchers have long advocated for clearer guidelines on staking. In April, the CCI's Proof of Stake Alliance project led a coalition of almost 30 organizations to submit a detailed letter to the SEC's Crypto Task Force, outlining that a non-custodial or custodial staking service provider is 'distinct from investment contracts.' 'The SEC has opened the door to more sensible regulation,' said Mangiero, adding that this is a 'win for stakers and the broader crypto community.' However, industry participants are still waiting for the approval of the first Ether staking ETFs. On May 21, the SEC delayed its decision on Bitwise's application to add staking to its Ether ETF, along with its decision on Grayscale's XRP ETF. SEC guidance marks 'notable shift' The SEC's new guidance marks a 'notable shift from previous enforcement-heavy approaches,' said Marcin Kazmierczak, co-founder and chief operations officer at blockchain oracle firm RedStone. 'This represents genuine progress toward regulatory clarity, but it's evolutionary rather than revolutionary,' he told Cointelegraph. 'The foundation is being laid for more comprehensive crypto regulation, with staking ETF approval becoming increasingly plausible by late 2025,' Kazmierczak added. The establishment of the SEC's dedicated Crypto Task Force on Jan. 21 marked another step away from the previous enforcement-heavy regime. The task force, headed by Commissioner Hester Peirce, is preparing to release its first report on regulations during the 'next few months,' SEC Chair Paul Atkins said in a May 20 hearing. The new guidance comes after years of efforts by CCI's Proof of Stake Alliance, which has been educating policymakers about the importance of cryptocurrency staking. 'We've consistently argued that protocol staking is not an investment activity — it's a core function of how modern blockchains operate,' said Mangiero, adding that the new SEC guidance is a meaningful progress toward 'recognizing that distinction.' Source:
Arabian Post
6 days ago
- Business
- Arabian Post
Bitcoin Gains Traction as Investors Seek Stability Amid Economic Uncertainty
Bitcoin has surged to a record high of nearly $112,000, diverging from a flat and uncertain stock market. Traditionally, both assets moved in tandem, but 2025 has seen episodes of decoupling, particularly as Bitcoin has shown more resilience amid economic uncertainty spurred by President Trump's tariff policies. Analysts attribute the crypto rally not to a broad risk-on sentiment but to growing optimism around favorable regulatory shifts under the Trump administration. Policies such as Trump's executive order to create a federal bitcoin reserve and new state-level initiatives like Texas's proposed strategic bitcoin reserve and New Hampshire's law allowing public funds in digital assets have bolstered confidence. The cryptocurrency's ascent is further supported by institutional investors like BlackRock increasing Bitcoin allocations while reducing stock holdings, suggesting a shift in strategy. Proposed federal legislation to regulate stablecoins could further integrate cryptocurrencies with traditional finance and spur broader adoption. Despite the mounting risks, Bitcoin has maintained a price range between $90,000 and $100,000. Jeff Park, Head of Alpha Strategies at Bitwise, has boldly declared that Bitcoin currently offers a 'generational opportunity' for investors. Park highlighted BTC's implied volatility percentile – a measure that reflects how its current volatility compares to historical levels – noting that BTC's IV percentile is at its lowest level of the year, reinforcing his view that Bitcoin presents a 'generational opportunity.' ADVERTISEMENT However, some experts urge caution. Mark Hackett from Nationwide Financial emphasized it's premature to classify bitcoin as a store of value due to its historically risk-prone nature. Analysts note that for bitcoin to be considered a legitimate alternative to safe havens like gold, it must sustain a long-term, low-correlation performance with traditional risk assets. In emerging markets like BRIC and GCC, Bitcoin exhibits a more distinct behavior, diverging from traditional assets. This divergence may stem from less integrated financial markets, where Bitcoin can act as an alternative investment vehicle in the absence of robust traditional safe havens like government bonds. Furthermore, in these regions, cryptocurrencies may attract retail investors seeking protection against local currency devaluation or inflation, which are more common in emerging economies. Bitcoin's unique characteristics, continued adoption, and overall industry growth make the cryptocurrency a viable instrument for hedging against global liquidity crises, according to Grayscale Investments. The digital currency asset manager explores how bitcoin can give investors protection in uncertain political and economic situations, arguing that the digital currency 'deserves a steady strategic position within many long-term investment portfolios' as it represents 'a transparent, immutable, and global form of liquidity that can provide both wealth preservation and growth opportunities.'
