Hougan: Bitcoin's Gold Connection Is Not Always Clear Cut

Bitwise Chief Investment Officer Matt Hougan thinks that Bitcoin does not live up to its reputation as 'digital gold' in all situations. While it can be a hedge against inflation and currency debasement, it behaves differently than gold at other times.

Hougan pointed out that from October to June, the dominant driver of Bitcoin's price was the crypto deleveraging cycle rather than macroeconomic factors. However, with Treasury Secretary Scott Bessent's interventions in the bond market, macro forces have taken over again, pushing Bitcoin's correlation with gold to its highest level in years.

According to Hougan, 'when you need it to act as a deep debasement hedge, Bitcoin in fact does that. It is in fact digital gold, but it's not exactly gold.'