Bitwise CIO says all roads still lead to Bitcoin regardless of AI boom or recession

Bitcoin could emerge stronger regardless of how the economy develops, as artificial intelligence, monetary policy and institutional adoption create different paths for long term growth, according to Bitwise Chief Investment Officer Matt Hougan. In his latest weekly CIO memo, published Wednesday, Hougan argued that Bitcoin could benefit from an AI driven productivity boom, a recession triggered by an AI market collapse or a period of moderate economic growth. “As I see it, every path ultimately ends with bitcoin higher,” Hougan wrote. The memo comes as Bitcoin faced renewed selling pressure Wednesday following a hotter than expected US inflation report. September’s Consumer Price Index rose 3.7% annually, above expectations of 3.6%, while core inflation increased 0.3% monthly, exceeding forecasts of 0.2%. The figures pushed expectations for another Federal Reserve rate hike higher. Traders raised the probability of a 25 basis point increase at the October 28 meeting to 41.5%, up from approximately 22% on Tuesday. Bitcoin dropped below $82,000 following the release, touching $81,500. The asset has traded largely between $81,500 and $82,000 throughout Wednesday, changing hands near $8...