Odaily News Bitwise Chief Investment Officer Matt Hougan weighs in on the cryptocurrency market crash. Hougan’s analysis highlights short-term market behavior and long-term recovery potential, providing a perspective based on historical data.
He wrote on X: “When the market falls and cryptocurrencies also sell off, people always panic about the correlation. But history shows: short-term declines, long-term rises.
My colleague Juan Leon (Bitwise Senior Investment Analyst) has researched this. Over the past decade, if you look at all the days when the SPX fell 2% or more, Bitcoin fell an average of 2.62%. In contrast, gold rose an average of 0.11%, indicating that it is a better single-day hedge. But if you look at a year from these days, Bitcoin rose an average of 189%, while gold rose an average of 7%.
Of course, there are no guarantees, but from my perspective, nothing major is happening in crypto today. I’m guessing this is a relatively short-lived phase.”