Bitcoin Finally Hits Bottom, Says Bitwise CIO Hougan
Bitcoin's recent downturn has led many investors to abandon ship, but Matt Hougan, CIO of Bitwise, thinks the cryptocurrency has finally hit bottom.
Hougan argues that Bitcoin is at a turning point and could be 'substantially higher' by year-end. He bases this prediction on the four-year cycles of boom and bust that Bitcoin typically follows.
In 2022, Bitcoin lost 64% of its value, but in 2023 and 2024, it delivered triple-digit returns to investors. Hougan believes that investors need to take a long-term perspective rather than focusing on short-term ups and downs.
From a long-term perspective, Bitcoin has performed surprisingly well as a store of value, increasing by 10,000% over the past decade compared to the U.S. dollar's 28% decline in just six years.