“For most investors, the right thing to do is to build your position through a dollar cost averaging strategy.” – 02:58
The segment opens with a discussion about a recent flash crash in Bitcoin, which sees its price drop below $111,000 after a whale sells off 24,000 Bitcoin. This significant sell-off triggers forced selling and raises concerns about the market’s stability, especially in light of recent comments made by Federal Reserve Chair Jay Powell.
Remy welcomes Matt Hougan, the Chief Investment Officer of Bitwise Asset Management, to provide expert insights on the situation. Matt acknowledges the short-term volatility in the market, noting that August and September are historically challenging months for cryptocurrencies. However, he emphasizes a long-term bullish outlook for Bitcoin, projecting a compound annual growth rate of 28.3% over the next decade. He points out that institutions are expected to need to acquire over a trillion dollars’ worth of Bitcoin in the coming years, driven by rising concerns about debts and deficits and an improving regulatory environment.
The conversation shifts to Ethereum, which has shown strength against Bitcoin, rallying 5% in the previous session. Matt mentions that while the derivatives market for ETH is signaling some overheating, the long-term outlook remains bright due to increasing institutional interest in stablecoins and tokenization.