Bitwise Asset Management believes that bitcoin is in a long-term bull market, with the upcoming halving event expected to have a significant impact, potentially generating $1 trillion in inflows into the market if global wealth managers allocated just 1% of their portfolios to bitcoin .
Bitwise Asset Management believes that “bitcoin is in a raging bull market” in the long term.
'We Believe Bitcoin Is in a Raging Bull Market'
The CEO and CIO of Bitwise Asset Management discusses the outlook for bitcoin and the upcoming halving event this week. Bitwise launched a bitcoin exchange-traded fund (ETF) in early January after the US Securities and Exchange Commission (SEC) approved 11 spot bitcoin ETFs.
In an excerpt from his weekly memo to investment professionals, Bitwise CIO Matt Hougan noted that in the short term, "bitcoin appears to be moving sideways on small changes in sentiment." However, he emphasized:In the long term, we believe that bitcoin is in a raging bull market.
"Not only is it up nearly 300% in the last 15 months, but there are strong reasons to think it will continue," he explained.
Its chief executive anticipates Bitcoin's upcoming halving to be "the most impactful we've ever seen." The company's chief investment officer explained that a global wealth manager allocating just 1% of its portfolio to bitcoin would mean around $1 trillion in inflows into the space. "The launch of a spot bitcoin ETF in January opened up the crypto market to investment professionals in a big way for the first time," he explained.
He argued: “Imagine global wealth managers allocating just 1% of their portfolios to bitcoin on average…a 2.5% allocation to bitcoin has increased the risk-adjusted returns of traditional 60/40 portfolios in every three-year period in history bitcoins." Hougan continued:
1% allocation overall would mean ~$1 trillion in inflow into the space.Hunter Horsley, co-founder and CEO of Bitwise Asset Management, explained on social media platform X this week why he believes the upcoming bitcoin halving will be the most impactful yet.
"Bitcoin's April 2024 halving may be the most impactful we have ever seen," he wrote. "Why? Last Bitcoin half, 2020, bitcoin was at ~$9,000. So the supply reduction in $ was ~$9 million per day, and ~$3 billion per year." Said the executive:
The halving at ~$70,000 bitcoin, would be >3x larger in $ terms: ~$32 million per day and ~$11 billion per year. A much greater reduction in sales is natural, at the same time we are seeing an increase in demand.
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