Bitwise Asset Management Chief Investment Officer Matt Hougan has pushed back against growing criticism of Bitcoin, arguing that the asset is still in a developmental stage and should not be judged by the standards applied to mature monetary systems. With Bitcoin down nearly 50 percent from its all time high, some commentators have questioned whether it has failed as a store of value, hedge, or payment tool. Hougan believes that view overlooks the natural evolution of emerging assets.
The debate intensified after a Bloomberg report described the current downturn as an existential test for Bitcoin. Former Merrill Lynch trader Tom Essaye argued that Bitcoin is not replacing gold and does not function as digital gold or a reliable hedge against inflation or instability.
Hougan rejected the idea that Bitcoin must instantly resemble a fully formed monetary asset. He described Bitcoin in its early years as purely speculative and envisioned a future where speculation fades as adoption broadens, potentially including ownership by central banks. According to him, an asset cannot move from total speculation to complete stability without passing through stages in between. He characterized the current period as an uncomfortable but necessary middle phase.
His remarks come as Bitcoin faces renewed volatility, including a sharp price drop following U.S. President Donald Trump’s announcement of a temporary global tariff. At the same time, online searches for phrases declaring Bitcoin dead have surged to levels last seen during the collapse of FTX in 2022, a signal some market participants interpret as a potential indicator that sentiment may be nearing a bottom.
Hougan has previously drawn comparisons between Bitcoin and gold’s behavior after the United States abandoned the gold standard in 1971. Once gold began trading freely, it experienced dramatic swings while establishing itself as an independent store of value. In 1974 gold rose 73 percent before falling 24 percent the following year. In 1981 it declined 33 percent after having surged 121 percent two years earlier.
He argues that Bitcoin is following a similar path, marked by strong long term appreciation combined with high but gradually moderating volatility. From this perspective, the current decline from its October 2025 peak near $126,000 reflects the growing pains of an asset maturing rather than evidence of failure.
