Nasdaq wants to launch a Bitcoin index options, seeks SEC approval

Options would allow institutional investors to hedge risks and traders to amplify their buying power. 

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3 Reasons To Invest In Ethereum, 1 To Stay Bitcoin-Only: Bitwise CIO

In a recent commentary shared on X, Matt Hougan, Chief Investment Officer at Bitwise Asset Management, which ranks as the world’s largest provider of cryptocurrency index funds, detailed why investors should consider diversifying their cryptocurrency portfolio by adding Ethereum (ETH), alongside maintaining a position in Bitcoin (BTC). Hougan offered three compelling reasons for investors to embrace ETH, while also presenting a critical viewpoint for remaining invested solely in BTC. Ethereum Vs. Bitcoin: 3 Reasons Pro-Ethereum Hougan began by emphasizing the importance of diversification within crypto investments. Drawing an analogy to the early days of the internet, he pointed out how difficult it is to predict which technologies or companies will dominate over the long term. “It is very hard to predict the future with precision,” Hougan remarked, referring to investors who bet on early internet companies like AOL and Pets.com, which failed to maintain their initial promise despite the internet’s overall growth. Related Reading: Ethereum At A Crossroads: Big Move Coming After Consolidation Phase? Applying this lesson to crypto, Hougan advised a diversified approach to hedge against similar uncertainties. Ethereum’s current market capitalization stands at approximately $420 billion, which is substantial but still only about one-third that of Bitcoin’s $1.3 trillion market cap. Given these figures, Hougan proposed a default starting allocation of 75% Bitcoin and 25% Ethereum for investors seeking broad market exposure. Hougans second point delved into the functional differences between Bitcoin and Ethereum. He described Bitcoin as primarily “a new form of money,” highlighting its design choices aimed at enhancing its utility as a robust monetary system. “Every design choice the Bitcoin ecosystem makes is designed to make Bitcoin the best form of money that has ever existed,” he stated, underscoring Bitcoin’s targeted development toward optimizing its use as a currency. Conversely, Ethereum is characterized by its role as a foundational technology for building new applications that leverage its capability for programmable money. This includes everything from issuing stablecoins to enabling complex decentralized finance (DeFi) ecosystems. “Ethereums primary function is making money programmable,” Hougan explained. He argued that the ongoing development within the Ethereum ecosystem provides a broader exposure to the potential applications of blockchain technology, which is still in its nascent stages. Related Reading: Double-Whammy For Ethereum: Price Collapses, Exchange Supply Dries Up The third argument for Ethereum centered on historical performance data. Hougan pointed out that historically, portfolios that included Ethereum along with Bitcoin showed better performance metrics, both in absolute terms and when adjusted for risk, across full crypto market cycles. “My favorite thing about that table is that the +ETH portfolio has both higher returns and a lower maximum drawdown,” he highlighted. This historical analysis suggests that Ethereum could offer better downside protection and higher potential returns, though Hougan cautioned that “past performance is no guarantee of future returns” and noted that in shorter, recent periods, a Bitcoin-only strategy would have outperformed. Counterpoint: Why a Bitcoin-Only Strategy May Be Preferable Addressing the other side of the coin, Hougan discussed why many investors might prefer a Bitcoin-only strategy. This perspective is especially relevant for those concerned with macroeconomic issues like the degradation of fiat currencies and inflation. Hougan posited that Bitcoin’s dominant position and its community’s focus on becoming a new form of money make it likely to continue leading this space. “It has a large lead, and size matters in money,” he stated, supporting the idea that Bitcoin’s simplicity and focused use-case as digital gold could be more appealing for certain strategic investments. Money is a massive market. There’s plenty of space for BTC to run if it succeeds. […] My view, in a word: If you want to make a broad bet on crypto and public blockchains, you should own multiple crypto assets. If you want to make a specific bet on a new form of digital money, buy Bitcoin, Hougan concluded. At press time, ETH traded at $3,514.06. Featured image created with DALL·E, chart from TradingView.com

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Bitwise CIO: Trumps crypto reserve is good news for the market

Crypto market prices have dipped following US President Donald Trump’s proposed crypto strategic reserve because it holds more than Bitcoin Trump announced on Sunday, the reserve would hold Bitcoin, Ethereum, XRP, Solana, and Cardano Matt Hougan, Bitwise’s CIO, lists three factors the market isn’t considering following the news Bitwise’s CIO has said that US President […]

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Altseason On The Way? Key DeFi Developments Signal Major Crypto Surge

In every market cycle, the altseason is an anticipated period for investors marked by a general altcoins’ price outperformance against Bitcoin. However, there have been many doubts over an altseason in the current bull run with crypto analysts citing a surge in the number of altcoins over the last four years. Interestingly, Bitwise Chief Investment Officer (CIO) Matt Hougan has backed the potential of a brewing crypto altseason. The key crypto figure and market pundit has stated that certain DeFi developments are pointing to a robust price surge for the crypto market. Related Reading: Altseason At Risk? Expert Believes Ethereum Must Hold $2,600 To Sustain Momentum DeFi Boom Incoming: Jupiter, Ondo, Uniswap Lead Charge To Altseason Via an X post on February 21, Hougan listed several developments, especially in the DeFi industry that hint at an incoming altcoin bull rally. Firstly, Hougan references the US Securities and Exchange Commission (SEC)’s latest decision to drop its lawsuit against the Coinbase Exchange. In June 2023, the US regulator charged Coinbase to court over several alleged securities violations including serving as an unregistered exchange and broker. However, in a sharp turn of events, the SEC has decided to withdraw its complaint ending a 2-year long legal battle The Bitwise CIO also mentions DEX aggregator Jupiter’s recent move to activate a fee structure introducing a minimum of 0.01% fees on all platform swaps which creates a more efficient operational model. Another development raised by Hougan is Ondo Finance’s announcement of the Ondo Global Market, a tokenization platform designed to introduce on-chain exposure to US securities such as stocks, bonds, and exchange-traded funds listed on the NYSE and NASDAQ. Finally, Hougan also spotlights the launch of the Unichain – an Ethereum-layer 2 solution designed by Uniswap labs to improve liquidity, cross-chain operatalibility and also significantly reduce transaction fees. In reality, these are all singular developments. However, Hougan explained these developments can be attributed to the ongoing efforts by the current US Government to create a “fair regulatory environment.” In doing so, crypto companies and DeFi projects can run effectively extending their reach beyond the digital asset space. The potential of this scenario is likely to encourage investor engagement serving as an early indicator of altseason.  In particular, Matt Hougan explains the DeFi market presents a lot of hidden potential to influence the non-crypto markets under the right conditions. Crypto Market Overview At press time, the crypto market cap is valued at $3.12 trillion after a 1.78% decline in the past day. Bitcoin maintains strong market influence with a dominance of 60.4%, followed by Ethereum (10.2%) and other altcoins (29.5%).  Meanwhile, the Altseason index is at 31 strongly in favor of the premier cryptocurrency. Related Reading: Bitcoin Dominance Tipped To Hit 57% Altseason Incoming? Featured image from iStock, chart from Tradingview

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Is The Crypto Bull Run Over? Top Exec Discusses The Market Crash

The broader crypto market experienced a pronounced downturn following yesterdays 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 Reserves decisionwhile meeting expectations for a 25-basis-point reductioncame 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 Feds 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, Bitcoins 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 todays market, exacerbating the pullback. Despite the steep correction, Hougan argued that the broader outlook remains constructive: Crypto now has internal momentum, and nothing about todays 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: Bitcoins 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: Cryptos in a multi-year bull market. 50bps of projected rate cuts wont change that. Other market observers offered similar interpretations of the Feds 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 banks 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: Its 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

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US Strategic Bitcoin Reserve Could Push Price To $500,000: Expert

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 demandthere’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 uncertaintyit 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 promisesif 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

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Crypto Has Already Won, Regardless Of Trump Or Harris Win: Bitwise CIO

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 Tuesdays 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, Id buy the dip,” he wrote. Reflecting on the industry’s resilience over the past four years, Hougan emphasized, “If theres one thing the past four years has taught me, its this: Washington cant 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 cant 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 environmentincluding “Operation Choke Point 2.0,” numerous SEC lawsuits, and a host of contradictory or ambiguous statementsthe 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 weve 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 Tuesdays 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

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Bitwise CIO: Three things are needed for Bitcoins melt-up to $80,000 in Q4

Matt Hougan has said three factors will push Bitcoin to $80,000 by the end of 2024 Hougan indicated that the US election is a big deal for crypto Altcoins could also help bolster the melt-up case for Bitcoin achieving new highs Bitwise’s CIO has indicated three things that could see Bitcoin achieving highs of $80,000 […]

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Can Bitcoin Hit $200,000 Only If The Dollar Falls? Bitwise CIO Answers

Matt Hougan, Chief Investment Officer of Bitwise Asset Management, addressed a pressing question among investors: Does the US dollar need to collapse for Bitcoin to reach a valuation of $200,000 per coin? Hougan’s analysis suggests that Bitcoin’s ascent to such a price level does not depend on a decline in the US dollar’s value but rather on Bitcoin’s maturation as a store-of-value asset and global economic factors increasing demand for such assets. Bitcoin Can Reach $200,000 Without US Dollar Collapse In a series of posts on the social media platform X, Hougan recounted a conversation with a financial advisor who posed the question over dinner. “Does the US dollar need to collapse for Bitcoin to hit $200,000? The answer is ‘no.’ Here’s why,” Hougan wrote. Hougan explained that investing in Bitcoin involves making two distinct bets. First, “Bitcoin will succeed in establishing itself as a new ‘store of value’ asset.” Currently, Bitcoin’s market capitalization is approximately 7% of gold’s $18 trillion market. Hougan noted, “If it ‘matures’ and becomes 50% the size of gold, every Bitcoin is worth over $400,000. Related Reading: Bitcoin Price Skyrockets Above $71,000: Key Reasons Explained Second, “Governments will abuse fiat currencies and increase demand for ‘store of value’ assets.” If the market for store-of-value assets triples in size due to such mismanagement, and Bitcoin maintains its 7% market share, “each Bitcoin is worth over $200,000.” He emphasized that these two arguments are independent but can compound. “If Bitcoin matures and the store of value market doubles, you quickly get to seven figures. For what it’s worth (FWIW), I think this is the most likely scenario eventually,” Hougan stated. Related Reading: Bitcoin Volatility To Peak By November 8 As Trump Trade Intensifies Report Addressing the initial question directly, Hougan asserted, “So, no, the dollar doesn’t need to collapse for Bitcoin to hit $200,000. All you need is Bitcoin to continue on its current path of maturing as an institutional asset.” He added that both factorsBTC’s maturation and potential fiat currency abuseare increasingly likely to occur simultaneously. “That’s why Bitcoin is surging toward all-time highs.” The discussion continued with input from Kevin Brent Cook, a user on X, who added nuance to Hougan’s explanation. “Concise, clear, and simple,” Cook remarked. “I would only add that the reason a ‘collapse’ isnt necessary is that under ‘abusing fiat’ comes the steady grind of deficit-driven dollar inflation (the US writes endless checks that never bounce), which naturally creates more currency chasing all assets.” Hougan concurred with Cook’s assessment, responding with a succinct “Agreed.” At press time, BTC traded at $72,445, up 23% in the last 20 days. Featured image created with DALL.E, chart from TradingView.com

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Bitcoin ETFs roar back with second day of $900M+ inflows

While the spot Bitcoin ETFs smashed industry expectations in 2024, the products finished poorly with outflows in six of the last eight trading days.

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