Bitcoin Shows Strength as Traditional Markets Stumble, Says Bitwise CIO

Bitcoin is proving to be more resilient than ever, according to Bitwise Chief Investment Officer Matt Hougan.

In a note to clients on Tuesday, Bitwise Chief Investment Officer Matt Hougan highlighted how Bitcoin (BTC) has remained nearly flat over the past 30 days despite an intense wave of macroeconomic pressure.

“We’ve had absolutely massive forces buffeting the crypto market on all sides — from the U.S. establishing a strategic reserve to President Trump enacting tariffs on the entire world — and we’ve gone precisely sideways,” Hougan said. He argues that this behavior shows Bitcoin is itching to move higher if macro obstacles would just get out of the way.

What stands out to Hougan is how BTC is behaving very differently from previous market corrections. Traditionally seen as a highly volatile risk asset, Bitcoin has historically dropped more sharply than stocks when markets turned sour.

In 2022, the S&P 500 dropped 24.5%, while Bitcoin plunged 58.3%. During the COVID crash of 2020, the S&P lost 33.8% and BTC followed with a 38.1% drop. Even in the late 2018 U.S.–China trade war downturn, the S&P slid 19.4% while Bitcoin crashed 37.2%.

By contrast, in the current correction, both the S&P and Bitcoin are down roughly 12%. That parity is unprecedented, Hougan says — and may mark the beginning of a fundamental shift.

As corporations and governments began accumulating Bitcoin in a big way, and some are now mulling BTC for strategic reserves, the asset is beginning to look more like a macro hedge than a speculative tool.

“There’s no guarantee this relationship will hold, or that the remarkable strength we’ve seen out of Bitcoin lasts forever,” Hougan noted. “But the hedge-asset narrative is gaining traction — and that’s a big deal.”

Of course, gold is still outperforming Bitcoin during this pullback, and the crypto market is still quite volatile. But the fact that BTC is staying above $80,000 and largely holding its own while global markets are in a state of upheaval is, to Hougan, a powerful signal.

“The world is unraveling, and Bitcoin is trading above $80,000,” Hougan wrote. “If that doesn’t give you confidence in its staying power, I don’t know what will.”

As the broader market seeks stability amid a turbulent macroeconomic backdrop, and the crypto space continues to mature, BTC may be carving out a more stable and central role in the global financial ecosystem — one correction at a time.