The broader crypto market experienced a pronounced downturn following yesterday’s Federal Open Market Committee (FOMC) meeting, held on December 18. After the US Federal Reserve delivered a 25-basis-point rate cut as anticipated, it also signaled fewer cuts in 2025 than previously expected. In response, the Bitcoin price fell by more than 5%, dropping below the $100,000 mark before showing slight signs of recovery. Altcoins saw across-the-board double-digit percentage declines. The Federal Reserve’s decision—while meeting expectations for a 25-basis-point reduction—came with a notable shift in the projected rate trajectory for next year. Rather than the previously communicated four cuts, the central bank now anticipates only two, signaling a more cautious stance. This recalibration of future monetary policy sent ripples through the entire risk asset spectrum, prompting the S&P 500 to decline 3% and the Russell 2000 Small Cap Index to drop 4.4%. Is The Crypto Bull Run Over? Within the crypto sector, the immediate aftermath was pronounced. Matt Hougan, Chief Investment Officer at Bitwise Asset Management, addressed the market conditions this morning via X, writing: “The big catalyst today was the Fed announcement […] The Fed cut rates by 25 basis points as expected, but lowered expectations for next year from 4 cuts to 2 cuts. Higher rates are bad for risk assets, and the Fed’s announcement caused a sharp pullback in all risk assets.” Related Reading: Bitwise Exec Reveals His Personal Top 3 Crypto Predictions For 2025 According to Hougan, Bitcoin’s price action reflected heightened sensitivity to shifting monetary conditions. He noted that Bitcoin price drop was exaggerated by leveraged positions being liquidated. “$600 million of leveraged long positions were blown out in today’s market, exacerbating the pullback.” Despite the steep correction, Hougan argued that the broader outlook remains constructive: “Crypto now has internal momentum, and nothing about today’s announcement interrupts the mega-trends: The pro-crypto reversal in Washington policy, rising institutional adoption and ETF flows, Bitcoin purchases by governments and corporations, and major tech breakthroughs in the programmable blockchain space.” He pointed to technical indicators as a supporting factor for his thesis: “My favorite momentum gauge is still positive: Bitcoin’s 10-day exponential moving average ($102k) is still above its 20-day exponential moving average ($99k).” Related Reading: Crypto Watchlist: Top 5 Coins To Watch This Week Hougan concluded his thread by maintaining that the shift in Fed expectations would not derail the longer-term bull run, stating: “Crypto’s in a multi-year bull market. 50bps of projected rate cuts won’t change that.” Other market observers offered similar interpretations of the Fed’s communication strategy. Warren Pies, Founder of 3Fourteen Research, commented via X: “By upping inflation forecast, lowering UE rate, and keeping cuts in place, the Fed has actually opened the path to more than 2 cuts in 2025 as data ‘surprises’ to the dovish side.” Renowned macro analysts echoed this sentiment. Crypto analyst and podcaster Fejau (@fejau_inc) described the central bank’s approach as a strategy designed to guide market expectations: “Fed forced itself into cutting this week so is using a hawkish 2025 FFR dot plot forecast to talk down long bond yields despite cutting today […] Welcome to macro psyop warfare. Smoke and mirrors baby.” He characterized the dot plots as a tool for psychological influence rather than a strict roadmap: “It’s important to view the dot plots not as a future forecast of events, but as a psychological tool […] The Fed has bought themselves time to allow further data to come out before they actually make a move […] Can almost guarantee you 2025 will not occur as is forecasted in their dots.” Andreas Steno Larsen, CIO of Steno Global Macro Fund and CEO at Steno Research, offered a similar assessment: “By hawking up all forecasts a lot, the Fed lowers the bar materially for cuts next year. It is a wise move, if you want to cut further, but do not want to precommit.” At press time, Bitcoin traded at $101,766. Featured image created with DALL.E, chart from TradingView.com
Bitcoin’s price experienced a sharp pullback following the US Federal Reserve’s recent rate cut, but market experts like Bitwise CIO Matt Hougan remain optimistic about the asset’s long-term trajectory. On Dec. 18, the Federal Reserve announced a 25-basis-point rate cut, scaling back its outlook for 2024 to two cuts instead of the previously expected four. […]
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In an exclusive interview with Yahoo Finance, Matt Hougan, Chief Investment Officer at Bitwise Asset Management, shared his bullish outlook on Bitcoin, projecting significant price appreciation by the end of 2025. “We expect Bitcoin to be up above $200,000 by this time next year,” Hougan stated, attributing this forecast to three primary sources of demand: exchange-traded funds (ETFs), corporate investments, and governmental acquisitions. Hougan elaborated, “There are ETFs that are vacuuming up Bitcoin, public companies like MicroStrategy are accumulating Bitcoin, and now we’re seeing discussions about governments investing in Bitcoin. It ultimately boils down to supply and demand—there’s too much demand and not enough supply, which drives the price higher.” When probed about the sustainability of such demand, Hougan emphasized the gradual awakening of different investor segments to Bitcoin’s value proposition. “People just wake up to Bitcoin at different paces. We’ve seen retail investors engage first, followed by companies and financial advisors, and now institutions are recognizing that Bitcoin belongs in a diversified portfolio,” he explained. Related Reading: Bitcoin Top Here? What Historical HODLer Selloff Pattern Says “Bitcoin is now a global macro asset worth a few trillion dollars, and virtually every investor should have some exposure. We still have a large number of investors to go, which is why I believe we’re still early in this journey. We have many quarters to go,” he added. How High Can Price Go If The US Buys Bitcoin? A pivotal aspect of Hougan’s forecast hinges on the potential establishment of a US Strategic Bitcoin Reserve (SBR). Addressing this, Hougan remarked, “If we do get a Bitcoin strategic reserve where the government is buying Bitcoin, as proposed in Senator Lummis’ bill for the government to purchase a million Bitcoin, $200,000 Bitcoin is going to be looking quaint. You’re going to be looking at three four $500,000 Bitcoin. It’s just too big a story because governments all around the world would have to do it.” Hougan admitted that he was first skeptical about Trump suggestions to establish a SBR. “But over the months, it hasn’t gone away in fact we continue to see leaders in the Trump Administration suggest that they’re open to it,” Hougan remarked. The Bitcoin CIO still thinks that the odds of the US government buying Bitcoin is less than 50%, but “it’s not zero,” he added. “If it happens or if we start to see it happening in other countries, you’re going to see a rip up in Bitcoin that will make 2024 look pretty docel in comparison.” Related Reading: Bitcoin Miners Now In Selling Mode For A Year: Should You Be Concerned? Hougan also highlighted the role of institutional platforms, specifically citing Coinbase as a potential major beneficiary in the evolving crypto landscape. “Coinbase is currently about half the size of Charles Schwab, and we believe it could surpass Schwab in brokerage size,” he noted. “Coinbase hasn’t had major competitors bubbling up to challenge it; it’s sort of had a degree of regulatory capture, if you can believe it. As a result, it’s been able to sustain its high margins in brokerages and then layer on things like stablecoins. [..,.] It’ll also help if it gets into the S&P 500; you see institutions buying it broadly. I think it’s a really unique situation driven by the fact that there was so much regulatory uncertainty—it cleared the competitive fat path and now it’s going to reap those rewards and build a really, you know, maybe an unsalable position leading this industry in the US.” Looking ahead to the broader market, Hougan anticipated an influx of crypto-related companies entering public markets. “We can expect firms like Kraken, Anchorage, and Chainalysis to go public, further normalizing the industry,” he stated. “This influx will lead to increased Wall Street coverage and institutional investment, setting the stage for a robust IPO window in 2025.” Despite the optimistic outlook, Hougan acknowledged potential risks that could impede Bitcoin’s growth. “The biggest risk is that politicians don’t deliver on their promises—if we don’t achieve regulatory clarity or fail to establish a strategic reserve, the expected bull market might not materialize,” he cautioned. “Regulatory and political factors are crucial drivers for crypto in 2025, and any setbacks in these areas could pose significant challenges.” At press time, Bitcoin traded at $104,212. Featured image created with DALL.E, chart from TradingView.com
Bitwise’s new Solana staking ETP enters the European market with competitive rewards and low fees.
In a post on X dated December 17, 2024, Jeff Park, Head of Alpha Strategies at Bitwise Asset Management, shared his personal top three predictions for the crypto sector in 2025. His insights come at a time when the crypto market has experienced significant growth, and after Bitwise released its annual top 10 crypto predictions for the next year. #1 Bitcoin Structured Products Surge Park predicts that by 2025, Bitcoin structured products will see an asset influx of at least $5 billion. He states, “The cold, hard truth is that most private wealth managers and institutions remain hesitant about taking on directional Bitcoin exposure.” Related Reading: Crypto Watchlist: Top 5 Coins To Watch This Week He elaborates that products like buffered notes and principal-protection ETFs will be pivotal in bridging this gap, offering tailored exposure to Bitcoin’s volatility to meet institutional preferences. “I predict that buffered notes, principal-protection ETFs, and similar instruments will unlock a floodgate of new demand, giving institutions access to Bitcoin’s volatility at the price they deserve, customized to their own preferences,” Park remarks. #2 Maple Finance Outpaces BlackRock’s BUIDL With a total value locked (TVL) of approximately $535 million as of his writing, Park believes Maple Finance will surpass BlackRock’s BUIDL project. He argues, “I hold an unapologetic view that decentralized markets, which enable novel financial primitives, will see adoption faster than ‘security tokenization’ projects retrofitting to legacy infrastructure.” Park sees decentralized lending platforms like Maple Finance, which provide institutional-grade services, as the category winners in the near future, potentially aided by favorable regulatory changes under the incoming Trump administration. “Institutional-grade, crypto-asset-backed decentralized lending like Maple Finance remains the most promising near-term category winner, bolstered by potential regulatory tailwinds,” Park forecasts. #3 Emergence Of A New Decentralized Crypto Stablecoin Despite past failures like LUNA, Park anticipates the rise of a new decentralized stablecoin backed by a decentralized strategic reserve. He asserts, “Bitcoin’s role as a reserve asset is now undeniable, spanning corporate balance sheets to nation-states,” but emphasizes the crypto community’s desire for a reserve that is “decentralized free from sovereign whims at all costs.” Related Reading: Crypto Market Hit Hard With $1.7 Billion Liquidated, Largest Event Since 2021 The new stablecoin, he predicts, will leverage heightened transparency and cryptographic proofs, aiming to restore trust and utility in decentralized finance. “Despite the scars left by LUNA, I predict a more robust effort will rise, built with heightened transparency and leveraging the long-awaited arrival of cryptographic proofs. I have some exemplary candidates in mind that can and will lead the way,” he states. These predictions by Park come after the predictions from Bitwise for 2025. The firm has projected Bitcoin to exceed $200,000, driven by institutional investment and ETF inflows. Ethereum and Solana are also expected to reach new all-time highs, further solidifying the growth narrative in the crypto space. Additionally, Bitwise sees 2025 as potentially becoming the “Year of the Crypto IPO,” with several crypto unicorns expected to go public in the US. At press time, Bitcoin traded at $106,794. Featured image from YouTube, chart from TradingView.com
This week’s Crypto Biz also explores Microsoft’s board’s stance on Bitcoin, JPMorgan’s revision of mining stocks, MARA’s new BTC purchase and upcoming listings of crypto firms.
Traders’ anticipation of a SOL ETF approval and a $750 price target from Bitwise are fueling traders’ optimism in Solana.
This year was good for crypto, but 2025 might turn out even better for the sector, according to Bitwise Asset Management.
Asset manager Bitwise sees the stablecoin market growing to $400 billion next year, with U.S. legislation, fintech adoption and global payments driving the growth.
The US financial regulator is soliciting comments on NYSE’s application to list Bitwise’s cryptocurrency index ETF.
Bitwise has predicted that in 2025, Bitcoin could hit $500,000, Coinbase will enter the S&P 500 and AI agents will drive the next “memecoin mania.”
The two Bitwise executives have worked tirelessly to get crypto exchange-traded funds approved by the SEC, and this year they finally succeeded.
Spot Bitcoin ETF provider WisdomTree became the fourth firm in the US to submit a Form S-1 filing with the SEC for a spot XRP ETF.
Bitwise said that it’s planning to rebrand its entire European ETP portfolio as it expands its operations in Europe.
After the 2024 US election, Bitwise and other asset managers seem to have been testing the regulatory waters for previously unapproved spot cryptocurrency ETFs.
Starknet has launched its staking program for STRK tokens, becoming the first Ethereum layer-2 network to enable staking, according to a Nov. 26 statement shared with CryptoSlate. The program aims to empower token holders to participate in securing the network while earning rewards. In this initial phase, token holders with at least 20,000 STRK can […]
The post Starknet debuts Ethereum layer-2 staking with Bitwise as early validator appeared first on CryptoSlate.
Bitwise, VanEck, 21Shares and Canary Capital have also recently submitted their S-1 registration statements to list a spot Solana ETF in the US.
Crypto-investments firm Bitwise took a big jump Thursday toward offering a Solana exchange traded fund (ETF) in the United States.
Bitwise Asset Management has taken a significant step toward launching a spot Solana exchange-traded fund (ETF). On Nov. 20, the company registered a statutory trust in Delaware through CSC Delaware Trust, signaling plans to file with the Securities and Exchange Commission (SEC) for approval. Bitwise CEO Hunter Horsley confirmed the registration in a Nov. 20 […]
The post Bitwise registers Solana Trust signalling future SEC application for SOL spot ETF appeared first on CryptoSlate.
Bitwise Asset Management is preparing to enhance its crypto product lineup by converting the Bitwise 10 Crypto Index Fund (BITW) into an exchange-traded fund (ETF), according to a Nov. 14 statement. Bitwise revealed that NYSE Arca has filed to uplist BITW as the first crypto index fund to achieve ETF status. This marks a significant […]
The post Here is why Bitwise wants to convert its $1.3 billion crypto index fund to an ETF appeared first on CryptoSlate.
According to Bitwise Chief Investment Officer (CIO) Matt Hougan, entering the Bitcoin (BTC) trade may not be too late. The executive recently said that until the flagship cryptocurrency hits $500,000, it’s “still early.” Potential Investors Should Not Be Discouraged By Bitcoin Price Action In a client memo shared yesterday, Bitwise’s CIO Hougan stated that while […]
It adds to Bitwise's roster of European staking ETPs. Staking is still prohibited in ETPs listed in the United States.
Bitcoiners don’t fear overvaluation the way stock traders do, says Bitwise Invest's CEO, after Bitcoin reached new all-time highs this week.
As Donald Trump secured his return to the presidency for the 2025-2029 term, Matt Hougan, Chief Investment Officer at Bitwise Asset Management, expressed a bullish outlook for the cryptocurrency market, proclaiming it has entered a “golden age.” In a recent video shared on social media platform X (formerly Twitter), Hougan highlighted the implications of Trump’s […]
Matt Hougan, Chief Investment Officer of Bitwise Asset Management, declared in an investor note today that the crypto industry has secured its place in the financial world, irrespective of the outcome of today’s US presidential election between President Donald Trump and Senator Kamala Harris. In his note titled “Crypto Has Already Won,” Hougan stated, “There is nothing left to say about Tuesday’s election.” He provided a succinct assessment for investors: “Short-term, a Trump victory is better than a Harris victory. Long-term, Bitcoin, Ethereum, and stablecoins will thrive regardless of who wins. Altcoins have more regulatory risk in a Harris regime than a Trump regime.” Hougan cautioned that the only unfavorable scenario for crypto would be a Democratic sweep. “It would embolden the fringe element of the Democratic Party that is overtly hostile to crypto. But even in that scenario, I’d buy the dip,” he wrote. Reflecting on the industry’s resilience over the past four years, Hougan emphasized, “If there’s one thing the past four years has taught me, it’s this: Washington can’t stop crypto. It can alter the trajectory. It can speed things up or slow things down. It can bring more confusion or new clarity. But it can’t stop it.” Related Reading: Crypto Expert Discloses ‘Hidden Altcoin Gem’ With 1,900% Upside According to the Bitwise CIO, the presidential election serves as a milestone to evaluate the crypto sector’s growth since November 2020. Despite a combative regulatory environment—including “Operation Choke Point 2.0,” numerous SEC lawsuits, and a host of contradictory or ambiguous statements—the progress made is remarkable. Hougan noted, “We focus so much in crypto on the moment-by-moment movement of prices that we often lose sight of the long-term trends. The presidential election provides a nice opportunity to step back and see how far we’ve come.” ‘Crypto Has Already Won’ He presented compelling statistics comparing November 2020 to November 2024. Bitcoin’s price increased from $13,677 to $69,492, a 408% rise. Ethereum went from $388 to $2,492, marking a 552% increase. Solana experienced a meteoric rise from $1.49 to $165.12, an increase of 10,982%. In terms of trading volume, the CME Bitcoin Futures Open Interest in October surged from $0.57 billion to $10.58 billion, a 1,756% increase. The seven-day moving average of crypto daily exchange volume expanded from $9.68 billion to $39.32 billion, a 306% increase. Decentralized exchange volume in October soared from $12.6 billion to $156.5 billion, reflecting an 11,142% increase. Assets under management also saw significant growth. The Bitcoin spot ETF assets under management, nonexistent in November 2020, reached $71.46 billion by November 2024. Stablecoin assets under management dramatically increased from $3.87 billion to $177.83 billion, a 4,495% rise. The total value locked in decentralized finance platforms increased from $9.57 billion to $139.3 billion, a growth of 1,356%. Related Reading: Top Crypto Analyst Unveils Best Altcoins For The 2025 Bull Run Network activity showed substantial increases as well. Monthly transactions on the Bitcoin network grew from 9.28 million to 20.48 million, a 121% increase. Monthly transactions considering Ethereum and Layer 2 solutions saw a massive rise from 33.3 million to 385.8 million, a 1,059% increase. Mainstream adoption indicators also highlighted crypto’s integration into traditional finance and politics. The number of top 20 asset managers with tokenized funds increased from none in 2020 to three in 2024. BlackRock’s adoption of Bitcoin and Ethereum, nonexistent in 2020, is one of the biggest stories in 2024. Because of all that, Hougan expressed strong confidence in the continuation of these positive trends. “The question to ask yourself as you look at the above statistics is whether they will continue. From my seat, the answer is a resounding yes,” he affirmed. He outlined several key expectations: spot crypto ETF inflows will continue; stablecoins will continue to grow rapidly; institutions will continue to ‘get off zero’ and add allocations to Bitcoin and crypto; Wall Street will continue to embrace tokenization and real-world assets; blockchains will continue to get faster and cheaper; and real-world applications like Polymarket will continue to break through and gain mainstream adoption. While acknowledging the election’s significance, Hougan minimized its long-term impact on Bitcoin’s and crypto’s trajectory. “Make no mistake: What happens in Tuesday’s election matters, particularly in the short term. But as I see it, over the long term, Tuesday will prove to be something between a speed bump and a wind gust. Neither is going to stop this train,” he concluded. At press time, Bitcoin traded at $68,932. Featured image from YouTube, chart from TradingView.com
With just four days to go until the US presidential election, crypto enthusiasts are hoping that a victory for their preferred candidate will lead to a higher Bitcoin (BTC) price. Who Will Be More Beneficial For Bitcoin? From a crypto-enthusiast perspective, the 2024 US presidential elections are unlike any other as both candidates recognize the […]
If Bitcoin matures as a store-of-value asset and governments continue to debase their fiat currencies, its price will surge well into six-figure territory, predicts Bitwise CIO Matt Hougan.
Institutional adoption, US government overspending and future economic stimulus packages are just a few reasons why analysts believe Bitcoin price is on the path to $100,000.
Solana price is up today, registering a 4% ascent over the past 24 hours as the wider crypto market continues to show strength.
If Vice President Kamala Harris beats Donald Trump in the U.S. presidential election, that could be good for Ethereum, though crypto is in good shape either way, Bitwise's Matt Hougan says.