- Matt Hougan, chief investment officer of Bitwise Asset Management, said Friday that the "fever hasn't broken at all" for Bitcoin (BTC-USD), at least among the financial-adviser market served by the company.
- Speaking to CNBC, Hougan reported that inflows remain strong for his company from a client base focused on a two- to five-year horizon.
- The Bitwise CIO characterized the current market as a "brief period of uncertainty" caused by a migration of Bitcoin mining out of China and a sense that further regulation is on the horizon.
- However, Hougan contended that moving mining operations out of China and a more stable, transparent regulatory structure could provide long-term positives for the cryptocurrency.
- "I think this is a pause that refreshes," he said.
- While he acknowledged the presence of near-term volatility sparked by crypto trading, he highlighted Bitcoin's long-term performance as an asset class.
- "As you extend your investment horizon, your risk in investing in crypto goes down," he said.
- With an advance that started late last year, Bitcoin rallied to a high above $63,000 in mid-April. It suffered a series of setbacks from there.
- By late June, Bitcoin had settled into a range roughly between $30,000 and $35,000. On Friday, the crypto was up 1.5% in intraday action at $32,071.09.
- Want more perspective about Bitcoin's near-term possibilities? SA contributor John Rhodes discusses the crypto's 2021 price predictions.