Bitwise CIO Says Now Is the Best Time Ever to Buy Bitcoin (On a Risk-Adjusted Basis)
Apr 2, 2025
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Matt Hougan, CIO of Bitwise, and Ryan Rasmussen, Head of Research at Bitwise, dive into Bitcoin's remarkable resilience, outperforming gold amid market turmoil. They discuss the promising future of cryptocurrencies, emphasizing Bitcoin's growing institutional acceptance and potential as a treasury asset. The conversation shifts to stablecoins, highlighting their crucial role in addressing the U.S. debt crisis and Circle's IPO filing. Overall, they paint an optimistic picture of the crypto landscape amidst macroeconomic uncertainties.
Bitcoin's current outperformance against traditional assets showcases its potential, making this an ideal time for investors to enter the market.
Corporate interest in Bitcoin is rising, as companies like GameStop embrace it as part of their treasury strategies for long-term growth.
Stablecoins are emerging as essential tools to stabilize the U.S. economy, facilitating global transactions in a volatile financial landscape.
Deep dives
Macro Trends Influencing Bitcoin
Current macroeconomic volatility is impacting the cryptocurrency market, particularly Bitcoin, which has outperformed gold and the S&P 500 since the recent election. Despite this outperformance, uncertainty stemming from government policies and tariffs is causing frustration among investors. The hosts express optimism that once this uncertainty dissipates, Bitcoin could potentially see all-time highs. They believe that the current environment creates an opportunity for long-term investors to enter the market at a favorable time.
Buying Bitcoin on a Risk-Adjusted Basis
The discussion emphasizes that now represents a historically low-risk opportunity to buy Bitcoin due to the removal of existential threats, such as a potential government ban. The hosts reflect on how, despite past risks associated with trading, custody, and regulatory environments, Bitcoin's status as a strategic reserve for the U.S. has significantly lowered these barriers. This shift positions Bitcoin for a substantial increase in value, drawing parallels to past opportunities where entering early would have led to significant gains. They highlight that with minimal risks and huge upside potential, this moment is deemed optimal for investment.
Institutional Adoption and Corporate Investments
The episode discusses the increasing interest and investment in Bitcoin from corporations, like GameStop, which recently raised funds to buy Bitcoin, positioning itself as a significant holder among public companies. This move indicates a broader recognition by executives of the potential benefits of investing in Bitcoin as part of a treasury strategy. Additionally, changes in accounting rules have made it easier for companies to incorporate Bitcoin, allowing them to reflect gains in their earnings. The presence of major firms exploring Bitcoin investments signals a pivotal moment for institutional adoption in the crypto space.
The Role of Stablecoins in the U.S. Economy
Stablecoins are presented as a critical solution to the U.S. debt crisis, acting as a vehicle for the digital dollar's global acceptance and potentially replacing foreign buyers of U.S. debt. The discussion reveals how stablecoins can enable accessibility for countries facing financial difficulties, allowing them to transact in a stable currency without relying on local volatile currencies. As the market for stablecoins grows, it is likely to become one of the largest buyers of U.S. treasuries, helping maintain the dollar's status as the global reserve currency. This transition is seen as essential for the U.S. financial ecosystem, especially in the context of geopolitical dynamics.
Future of DeFi and Altcoins
The hosts analyze the current state of altcoins and decentralized finance (DeFi), emphasizing that while Bitcoin appears to be on a stronger trajectory, other cryptocurrencies like Ethereum and Solana are also positioned for long-term growth driven by their underlying technology. However, they caution that the performance of altcoins may increasingly depend on their individual fundamentals rather than speculative trends. With a surge of interest in DeFi anticipated, the hosts foresee a potential resurgence, termed 'DeFi Summer 2.0,' as stablecoins and blockchain technology grow. Ultimately, they believe that this will lead to more users and investments pouring into the cryptocurrency market.
In today’s episode, we sit down with Bitwise’s Matt Hougan and Ryan Rasmussen to unpack why Bitcoin is outperforming everything, including gold and the S&P 500, despite macro chaos. We also get into Circle’s IPO, and why stablecoins might literally save the U.S. economy.
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The information presented in this video is for educational and informational purposes only. It should not be considered as financial, legal. The views and opinions expressed by the speakers, are their own and do not constitute professional advice. Investing in cryptocurrencies carries significant risks, including the potential for substantial losses.
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