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There's Silver Lining to This Bitcoin Correction, According to Bitwise Exec

There's Silver Lining to This Bitcoin Correction, According to Bitwise Exec

U.TodayU.Today2025/01/28 21:00
By:U.Today

Matt Hougan, chief investment officer at cryptocurrency index fund manager Bitwise, has opined that the current correction will be "short-lived" if history is any guide. 

In fact, Bitcoin tends to outperform following such short-term dips in the long term. 

"Over the past decade, if you look at all the days SPX has fallen 2% or more, bitcoin is down on average by 2.62%. Gold, by comparison, has risen 0.11% on average, showing it's a better one-day hedge. But if you look out one year from these days, bitcoin is up 189% on average versus 7% for gold," Hougan said.

As reported by U.Today, the U.S. stock market got clobbered following the release of a highly efficient and powerful model by Chinese startup DeepSeek. 

The shares of Nvidia collapsed by more than 17%, which is the biggest drop since March 2020. The market cap of the leading US chip maker has lost more than half a trillion dollars. 

Earlier today, Bitcoin hit an intraday high of $97,791, according to CoinGecko data. 

However, the cryptocurrency managed to recover swiftly, currently trading above the make-it-or-break-it $100,000 level.

Some market observers were quick to take note of Bitcoin's strength. Chris Burniske of Placeholder VC has commented that the tech-heavy Nasdaq 100 index has actually underperformed the flagship cryptocurrency during the recent sell-off despite the fact that the former has a market cap of more than $27 trillion. 

It is also worth noting that Bitcoin is just 8% away from its record high that was recorded just seven days ago.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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