1 month ago
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Bitwise Chief Investment Officer Matthew Hougan said the current market conditions are a prime buying opportunity for investors interested in Bitcoin, according to an Aug. 5 investor note.
Hougan pointed out that Bitcoin had historically ended the year higher following global economic stress and drew parallels to the 2020 COVID-19 crisis when BTC, like other assets, saw a sharp decline but eventually surged over 1,000% within a year.
Hougan noted that increased central bank interventions and the growing adoption of digital assets fueled this dramatic rise.
The investment chief suggested a similar scenario could unfold now because “Bitcoin [is] becoming more important, not less.”
Considering the above, Hougan anticipates a similar rebound this time. He expects the Federal Reserve to respond to economic unrest with increased liquidity, as it did during past crises.
The market anticipates a 98% chance of a rate cut by the Federal Reserve at its September meeting, as investors hope that fears of a recession will prompt an emergency rate cut. Historically, such interventions benefit riskier assets like Bitcoin, which investors pile into to hedge their investments.
So, Hougan advised investors to focus on Bitcoin’s long-term potential rather than short-term price fluctuations.
English (US) · 