EddieJayonCrypto
6 May 25
Matt Hougan, CIO of Bitwise, states that Bitcoin is entering the next phase of its evolution, shifting from a retail-driven asset to one supported by institutions, corporations, governments, and hedge funds. This transition is causing Bitcoin to behave more like a hedge asset rather than a risk asse...
Bitcoin is undergoing a significant transformation, shifting from a retail-driven risk asset to an institution-driven hedge asset, signaling its maturation and rising acceptance as a trusted store of value.Matt Hougan, CIO of Bitwise, highlights this evolution, noting that Bitcoin is entering a new phase where major institutions, corporations, governments, and hedge funds are increasingly supporting it. This institutional backing is causing Bitcoin to behave more like a hedge asset rather than a volatile risk asset, reflecting its growing role in macroeconomic strategies.Hougan explains that the Bitcoin market today is markedly different from that of five years ago, which was dominated by retail and crypto-native investors. Now, the influx of large institutional players is laying the foundation for Bitcoin’s status as a valuable hedge tool.Describing Bitcoin as a "teenager" at 15 years old, Hougan emphasizes that it is in transition and its future trajectory will see it acting more as a hedge asset. This shift is expected to attract a broader base of investors who recognize Bitcoin's utility in diversified macroeconomic portfolios.At the time of writing, Bitcoin is trading at $94,703, illustrating its continued relevance and dynamic evolution within the financial landscape.