 ▲ Bitcoin (BTC) / ChatGPT-generated image |
Bitcoin has emerged as a new payment network that transcends the limitations of traditional finance even amid geopolitical crises, reaching a pivotal inflection point for explosive growth alongside confirmation of a long-term market bottom.
In an interview on March 4 (local time) with crypto-focused YouTube channel Paul Barron Network, Bitwise CIO Matt Hougan highlighted how investors flocked to decentralized finance platforms such as Hyperliquid during the recent Middle East conflict, when traditional financial markets were closed early Sunday morning. Hougan described this movement as “a technological turning point similar to the rapid growth of bond ETFs during the 2008 financial crisis,” predicting that digital assets could become the new standard for a 24/7 global financial system.
U.S. President Donald Trump’s strong criticism of the banking sector over stablecoin regulation, effectively siding with the digital asset industry, acted as a decisive catalyst in easing market uncertainty. Following Trump’s remarks, the likelihood of the U.S. crypto market structure bill passing surged, and Bitcoin (BTC) rebounded from the $73,000 range to $74,000. Hougan expressed confidence that “the passage of a U.S. crypto market structure bill signals the market bottom,” adding that Bitcoin is unlikely to fall below the $60,000 level again.
Rapid advances in artificial intelligence technology are creating deflationary pressures that could support future rate cuts and foster a favorable environment for risk assets such as digital currencies. Hougan advised that public market investors need at least a 5% allocation to private markets to avoid missing out on AI-driven innovation largely occurring in non-public startups. As Arthur Hayes and others have pointed out, the possibility of the Federal Reserve increasing liquidity to support wartime expenditures further strengthens Bitcoin’s appeal as a store of value.
The news that Kraken Financial became the first digital asset firm to receive approval for a Federal Reserve master account signals that the convergence of traditional finance and digital assets has entered an irreversible phase. With major institutions such as BlackRock showing interest in projects like Aave and Morpho that offer tangible revenue models, a differentiated altcoin market cycle distinct from the past is expected to unfold. Hougan also noted that Baby Boomers and long-term investors have been steadily accumulating Bitcoin through spot ETFs, establishing a solid support base even during downturns.
With greater regulatory clarity and accelerating institutional capital inflows, the digital asset market is entering a new stage of maturity, reshaping the financial order. Policy support from the Trump administration combined with technological innovation is reinforcing Bitcoin’s market dominance. As the global asset management paradigm shifts toward digital assets, investors are strengthening strategic efforts to secure high-value projects connected to the real economy.
Disclaimer: This article is for investment reference only and the publisher is not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.