Bitcoin has shown remarkable resilience in the face of increasing global market instability triggered by renewed tariff tensions and could be on the verge of a major breakout, according to Bitwise CEO Matt Hougan.
Speaking in a recent interview, Hougan noted Bitcoin’s relative stability compared to the broader stock market, which has been rocked by President Trump’s recent tariffs on U.S. trading partners. “Bitcoin bulls should be inspired by this performance,” Hougan said. “It’s poised to rise significantly if we experience a period of stability in the broader stock market.”
Hougan drew a sharp contrast to previous periods of economic stress, particularly the COVID-19 crash of 2020, when Bitcoin plunged below $5,000. “It’s a different asset,” he said. “There’s a broader distribution of institutional ownership now, and I think what that tells you is that once this market volatility levels out, we’re going to see a return to all-time highs and beyond.”
Bitwise recently launched a series of covered call strategies targeting crypto-related stocks, including companies like MicroStrategy, Marathon, and Coinbase. These strategies aim to capitalize on crypto’s defining characteristic of volatility by writing calls against high-beta positions to generate returns.
“The MicroStrategy product in particular has seen strong trading,” Hougan said, adding that demand is increasing from investors looking to both gain exposure to crypto and generate income.
On the global macroeconomic front, Hougan sees Bitcoin as a long-term winner in the so-called “currency war” and the shift away from reliance on the U.S. dollar as the sole reserve currency. “When fiat currencies fall, Bitcoin wins,” he said.
*This is not investment advice.