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Yahoo
7 days ago
- Business
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'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
22-05-2025
- Business
- Yahoo
Bitcoin hovers near $111,000 as crypto momentum grows
Bitcoin broke a new record earlier today before settling at $111,000 per token, driven by institutional buying, a crypto-friendly environment, and an increasing appetite for an alternative store of wealth amid US debt fears. The digital currency passed $111,700 on Thursday as a massive tax-cut bill made its way through Congress. "The market today is reacting to the fact that the government has sort of said it's on board to grow deficits, to print more money, to expand the fiscal debt — and that's forcing people to look outside of fiat currencies to an alternative," Matt Hougan, CIO of digital asset management firm Bitwise, told Yahoo Finance on Thursday morning. The new record comes amid concerns of recent rising bond yields, a sign that investors may be growing uneasy with ballooning US debt levels. "I think something may have started to break with investors' long-term appetite for debt," Hougan added. Institutional buying has also lifted prices in recent weeks as spot exchange-traded funds (ETFs) and a friendly regulatory framework promised by the Trump administration have triggered increased demand. "That's new demand against fixed supply, and that pushes prices up," Hougan said, highlighting more than $8 billion flowing into bitcoin-related ETFs in the past 30 days. Bitcoin has rallied 60% since President Trump won the White House and put in place key figures to forge ahead with a token-friendly framework, a promise on which he campaigned. One of those moves included placing cryptocurrency advocate Paul Atkins as SEC chair following Gary Gensler's departure in January. Read more: How would Trump's strategic bitcoin reserve work? This week's push higher in prices also comes on the heels of a key procedural win in the Senate on Monday night for legislation to regulate stablecoins — cryptocurrencies pegged to assets like the US dollar. The bill, which could face a final vote as early as this week, is seen as a major step toward broader crypto adoption. Meanwhile, on Thursday morning, the Wall Street Journal reported that crypto exchange Kraken plans to offer "tokenized equities" of popular stocks like Apple (AAPL), Tesla (TSLA), and Nvidia (NVDA) to non-US customers. Adding to the industry's momentum, Coinbase (COIN) on Monday became the first and only cryptocurrency exchange to join the benchmark S&P 500 (^GSPC) index — a symbolic milestone for the industry. Companies are increasingly adding bitcoin to their balance sheets. "Globally, ~80 corporates have adopted the 'Bitcoin Standard,' adding BTC to their treasuries and now holding approximately 3.4% of total supply," Bernstein analyst Gautam Chhugani wrote in a recent note. That amounts to roughly 720,000 tokens — up 160% from the 270,000 held at the end of 2023. Bernstein forecasts that bitcoin will reach $200,000 by year-end. Ines Ferre is a Senior Business Reporter for Yahoo Finance. Follow her on X at @ines_ferre. Click here for in-depth analysis of the latest stock market news and events moving stock prices 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
21-05-2025
- Business
- Yahoo
Bitcoin Goes Mainstream as JPMorgan Reverses Stance
Jamie Dimon, who once threatened to fire traders for buying Bitcoin, now allows JPMorgan Chase & Co. (JPM) clients to purchase the cryptocurrency, signaling a shift in institutional acceptance, according to industry experts. Its transformation from fringe asset to mainstream investment vehicle has accelerated in recent weeks, with JPMorgan's reversal, the addition of Coinbase Global, Inc. (COIN) to the S&P 500 and progress on stable coin legislation marking what experts call "the great derisking" of cryptocurrency—a process that's removing traditional barriers and potentially opening the floodgates to trillions in institutional investment. "It's not the first one we've seen," said Matt Hougan, chief investment officer at Bitwise Asset Management, during a recent webinar hosted by the Digital Assets Council of Financial Professionals. "Remember, Larry Fink called Bitcoin an index of money laundering, and then called it an asset that could replace the dollar," he added, referencing the BlackRock Inc. (BLK) CEO's evolution on cryptocurrency. According to Hougan, the JPMorgan announcement marks another milestone in Bitcoin adoption. "I think JPMorgan will get there. I think you're going to see their clients buy billions of dollars of Bitcoin. It's another sign that Bitcoin is moving from the edges fully into the mainstream," he told webinar attendees. The significance extends beyond a single bank, according to Ric Edelman, founder of the Digital Assets Council of Financial Professionals. "And let's keep in mind, of course, that if JPMorgan says this, the others have no choice but to follow," Edelman said during the presentation. Hougan confirmed this industry-wide shift is already happening at major financial institutions. "This was already happening. JPMorgan is a part of a bigger story," he said, explaining that firms like Morgan Stanley (MS), Merrill Lynch, UBS Group AG (UBS), Wells Fargo & Co. (WFC) and regional broker-dealers are all moving in the same direction. The shift comes as major wealth management platforms begin to allow Bitcoin investment. "There's about $30 trillion of wealth that has not been able to buy the Bitcoin ETFs yet, and that is just opening up right now," Hougan said during the webinar, referring to assets managed by major financial institutions. The influx of institutional capital creates a fundamental supply-demand imbalance, according to Hougan. "The beauty of Bitcoin is its price is set by supply and demand," he explained, noting, "We create 165,000 new Bitcoin every year" while ETFs and public companies have already purchased more than the annual production in recent months. "When increased demand meets with fixed supply, I think what happens there is the price goes up," Hougan added, explaining the economic forces that could drive Bitcoin's value higher as institutional adoption increases. Hougan projected large price increases for Bitcoin over the next several years. "Our view is Bitcoin is going to get there in the next five years," he said, referring to a potential $1 million price target by 2029. This price target is based it potentially reaching market cap parity with gold, which Hougan described as a $23 trillion market compared to the cryptocurrency's current valuation of approximately one-tenth that size. For advisors entering the crypto market, Hougan recommended starting with client conversations and considering a measured approach to investing. "From an allocation perspective, I think there are good arguments to be made of dollar cost averaging into Bitcoin as a way of reducing behavioral risk," he | © Copyright 2025 All rights reserved 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
Business Mayor
21-05-2025
- Business
- Business Mayor
Bitwise CIO: Stablecoin Bill May Spark Multi-Year Crypto Bull Run
A Senate vote to advance a bill regulating stablecoins is being hailed as a pivotal moment for the cryptocurrency industry. Bitwise's Matt Hougan Says GENIUS Act Lays Groundwork for Institutional Adoption Hougan's latest analysis explained that the U.S. Senate voted 66–32 on Monday to move the Guaranteed Essential Neutral and Interoperable Uniform Stablecoins (GENIUS) Act […] READ SOURCE
Yahoo
19-05-2025
- Business
- Yahoo
Bitwise Investment Chief Makes Case For Diversified Crypto Exposure, Compares It To Internet In 2004
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Bitwise CIO Matt Hougan has suggested that investors in only Bitcoin may be leaving gains on the table. Hougan compared the cryptocurrency landscape to the internet in 2004. Altcoins have experienced a resurgence in the past seven days. In the volatile world of cryptocurrencies, flooded with millions of coins, it is easy for risk-averse investors to choose to stick with only Bitcoin. While there is likely nothing wrong with that, Bitwise Chief Investment Officer Matt Hougan has suggested that these investors may be leaving substantial future gains on the table. 'Bitcoin is the king of crypto assets—the largest, most liquid, and most established. In my opinion, it's akin to 'digital gold' and is the only crypto asset with a shot at being a globally important currency. And yet I think most investors should own other crypto assets,' Hougan said in a note to investors on Tuesday. Don't Miss: — no wallets, just price speculation and free paper trading to practice different strategies. Grow your IRA or 401(k) with Crypto – . He compared the present cryptocurrency landscape to the internet in 2004, a marked shift from the usual comparisons to the dot-com bubble, which saw several internet-based firms boom and burst. Hougan highlighted that in 2004, an investor optimistic about the future of the internet may have been tempted to invest in only Google as search was the dominant business and Google was king. He pointed out that they would have been okay, as the stock price has surged over 6,300% in the past 20 years. But he stressed that the internet was not only about search, adding that investors could have made better returns by also investing in the leaders of other verticals like retail, video and B2B software such as Amazon (NASDAQ:AMZN), Netflix (NASDAQ:NFLX) and Salesforce (NYSE:CRM). 'Google did exceptionally well. Today it's one of the most valuable assets in the world. But other categories did well, too—in fact, the best performer turned out to be Netflix. That wasn't obvious in 2004,' Hougan wrote. Trending: New to crypto? on Coinbase. He said that, like the internet, blockchain technology has different verticals, from decentralized finance to tokenization, each with the potential to offer different returns over time. 'If you think blockchains are really only useful for protecting against the abuse of fiat currencies, my recommendation is just to buy bitcoin,' he said. 'But if you agree with me that blockchains are a general use technology—if, for instance, you're intrigued by the idea of nearly all the world's assets moving onchain—history suggests you'd want to own a basket of crypto assets: Bitcoin, Ethereum, Solana, Chainlink, and more.' Hougan's recent note comes as altcoins have experienced a resurgence this week. For example, Ethereum, the second-largest cryptocurrency by market, has pared nearly half of its losses this year with a roughly 50% surge in the past seven days. Close competitors XRP and Solana are up 20% in the same period. Hougan attributed the recent resurgence to 'a general risk-on shift in the market.' This shift is likely due to easing global trade tensions and cooling inflation data. 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 Bitwise Investment Chief Makes Case For Diversified Crypto Exposure, Compares It To Internet In 2004 originally appeared on Sign in to access your portfolio
