Bitwise's Chief Investment Officer Matt Hougan sees Bitcoin BTC/USD well-positioned for the future, citing several political developments as fundamentally bullish factors.
What Happened: Speaking at the Blockworks Digital Asset Summit in New York on Thursday, Hougan argued that current macroeconomic conditions are reinforcing Bitcoin's long-term investment case while applying short-term pressure on its price.
He described this moment as "the single best time in history to buy Bitcoin from a risk-adjusted perspective."
Hougan's Bitcoin valuation model accounts for both long-term price targets and discount rates.
According to Hougan, "the macro environment is strengthening Bitcoin's long-term case," citing "economic instability and government intervention" that fuel bullish long-term targets for Bitcoin.
Hougan also praised the U.S. Strategic Bitcoin Reserve proposal, claiming it eliminates one of Bitcoin's biggest risks -- government prohibition.
"Once governments start acquiring Bitcoin, they won't ban it," Hougan concluded.
What's Next: Hougan called stablecoins a "gift from the gods" to the U.S. Treasury, predicting they could generate $1 trillion in new demand for U.S. short-term debt at a time when traditional buyers are pulling back.
He expects stablecoin legislation to pass with bipartisan support, as it strengthens U.S. dollar dominance.
Ethereum & L1 Blockchains: He believes Ethereum and other L1s are "overbuilt" relative to current demand due to regulatory constraints. If those barriers are lifted, a faster-than-expected bull run could follow.
Read Next:
Peter Schiff Says Strategic Bitcoin Reserve Is A 'Scam' To Lure Americans Into Buying More Crypto
Image: Shutterstock
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