Matt Hougan Claims the End of the Bitcoin Bear Market Is Approaching

According to one analyst, signals are strengthening that the “bear season” in the cryptocurrency markets is coming to an end. Matt Hougan, Chief Investment Officer (CIO) of Bitwise, claims that the massive rise in gold is beginning to lose momentum and that capital will flow back to Bitcoin.

Matt Hougan, a figure closely followed in the financial world, evaluated the dynamics between gold and Bitcoin in his latest broadcast. According to Hougan, Bitcoin, which has lagged behind in the “attention economy” due to the recent shift in investor interest towards gold and artificial intelligence (AI), is preparing to make a comeback as the tide turns.

Hougan notes that institutional investors are asking, “If Bitcoin is digital gold, why is it falling while gold is breaking records?” and that this has led to a “trend break.” However, the expert states that this process has come to an end, arguing that the wind is now beginning to turn against gold and in favor of Bitcoin.

Hougan argues that gold’s market value surpassing $30 trillion is actually very positive news for Bitcoin. Recalling that the entire gold market was worth $2.5 trillion when the first gold ETF was launched in 2004, Hougan says that today, the “store of value” (TAM) market, which Bitcoin is targeting, is heading towards $50 to $100 trillion. This means that Bitcoin’s share of this massive market will be much larger in the long term.

According to the analyst, the RSI (Relative Strength Index) in the Bitcoin/Gold pair is trading at its lowest levels in history. Hougan states that the fear and greed index among individual investors is at its lowest point, and predicts that Bitcoin’s exit from the “crypto winter” may be closer than many expect.

*This is not investment advice.