{"id":3871,"date":"2025-03-26T19:13:11","date_gmt":"2025-03-26T19:13:11","guid":{"rendered":"https:\/\/coinsvalue.net\/blog\/now-is-the-best-time-to-buy-bitcoin-says-investment-giant\/"},"modified":"2025-03-26T19:13:11","modified_gmt":"2025-03-26T19:13:11","slug":"now-is-the-best-time-to-buy-bitcoin-says-investment-giant","status":"publish","type":"post","link":"https:\/\/coinsvalue.net\/blog\/now-is-the-best-time-to-buy-bitcoin-says-investment-giant\/","title":{"rendered":"Now Is The Best Time To Buy Bitcoin, Says Investment Giant"},"content":{"rendered":"

In its latest investor memo, titled \u201cThe Great Derisking of Bitcoin,\u201d Bitwise Asset Management has taken a bold stance on the future of the world\u2019s original cryptocurrency. Chief Investment Officer Matt Hougan delivered a detailed analysis in a dispatch dated March 25, 2025, stating, \u201cNow is the best time in history to purchase bitcoin (on a risk-adjusted basis).\u201d The memo<\/a>, which includes reflections on Bitcoin\u2019s early days and an assessment of its biggest milestones, offers insight into why Bitwise believes the leading digital asset\u2019s risk profile has shifted dramatically in recent years.<\/p>\n

Best Time To Buy Bitcoin<\/h2>\n

In his opening remarks, Hougan recounts his introduction to Bitcoin back in February 2011, when he was working as part of a financial analytics team at ETF.com. During a routine market review meeting, one of Hougan\u2019s young analysts brought up the fact that Bitcoin had just crossed $1\u2014a landmark event that triggered a discussion about its underlying technology and potential use cases. \u201cIf I had invested $1,000 in bitcoin after that meeting, it would be worth $88 million today,\u201d Hougan laments in hindsight.<\/p>\n

This anecdote, however, is not simply a story of missed opportunity. Hougan underscores the risks that were pervasive at the time, emphasizing how the idea of transferring $1,000 to a \u201crandom PayPal address\u201d through a nascent crypto exchange was a nerve-racking and largely untested proposition. Moreover, custody, regulatory clarity, and government oversight were virtually nonexistent, effectively turning any cryptocurrency exposure into a high-risk, high-reward gamble. \u201cThrow in custody, regulatory, technological, and governmental risks \u2026 and putting $1,000 on bitcoin in 2011 was a massive gamble,\u201d he explains.<\/p>\n

Central to Hougan\u2019s thesis is that Bitcoin has, over the years, methodically overcome nearly every existential threat that once loomed. He notes that early attempts to create digital cash\u2014such as the National Security Agency\u2019s 1997 paper titled \u201cHow To Make A Mint: The Cryptography of Anonymous Electronic Cash\u201d\u2014never fully took off, making it far from guaranteed that Bitcoin itself would succeed.<\/p>\n

From there, improvements in trading venues and custodial solutions gradually reduced the barriers to entry. When Coinbase launched in late 2011, it marked a pivotal moment by offering a more user-friendly and trustworthy on-ramp for retail and institutional investors alike. Major custodial providers, including Fidelity, would later extend their operational and brand strength to crypto, further mitigating concerns over security and storage.<\/p>\n

Simultaneously, the once-pervasive fears of regulatory clampdowns began to wane. In 2024, the introduction of spot Bitcoin exchange-traded funds (ETFs) in the US removed another major roadblock. Hougan observes that broader acceptance in traditional financial markets made it easier for institutions to justify adding digital assets to their portfolios without worrying about opaque regulatory regimes or insufficient market surveillance.<\/p>\n

\u201cWhen bitcoin first launched, there was no guarantee it would even work. [\u2026] The incredible thing about bitcoin is it has slowly but surely knocked down each and every one of these existential risks over time,\u201d writes Hougan, underscoring his view that Bitcoin\u2019s evolutionary path has been one of measured resilience.<\/p>\n

Bitcoin Last Threat Is Removed<\/h2>\n

One key question, however, continued to shadow Bitcoin\u2019s rise: What if a major government decides to ban or severely restrict the cryptocurrency? Hougan points to a historical parallel: the US government\u2019s gold confiscation order in 1933, enacted under President Franklin D. Roosevelt. The measure aimed to consolidate gold holdings to strengthen government reserves, fueling a common fear among Bitcoin investors that a similar ban could stifle the cryptocurrency\u2019s growth or outright render it illegal.<\/p>\n

\u201cThe US famously confiscated private gold holdings in 1933 to boost public coffers. Why would it allow bitcoin to grow large enough to threaten the US dollar?\u201d Hougan acknowledges.<\/p>\n

This worst-case scenario, he adds, was often tempered by reminding people that if Bitcoin did become significant enough to rival the dollar, \u201cyou\u2019ll probably have done pretty well on your investment.\u201d Still, uncertainty remained\u2014until what Hougan views as a decisive event occurred earlier this month.<\/p>\n

President Trump\u2019s executive order establishing a US Strategic Bitcoin Reserve, signed in early March, seems to have addressed that lingering concern, Hougan says. By making a direct investment in Bitcoin, the US government effectively nullified the prospect of an outright ban, transitioning instead to a policy of strategic alignment. \u201cAnd just like that, the last existential risk facing bitcoin disappeared before my eyes,\u201d Hougan remarks.<\/p>\n

Critics have questioned why the US would endorse what could be construed as a competitor to the dollar\u2019s status as the global reserve currency. Quoting Cliff Asness, founder of AQR Capital, Hougan points to the immediate query: \u201c(I)f crypto is a viable long-term competitor to the US dollar, why on earth would we be promoting this direct competitor to our being the world\u2019s reserve currency?\u201d<\/p>\n

In Hougan\u2019s assessment, the US government is positioning Bitcoin as a hedge rather than relinquishing monetary dominance. If the dollar\u2019s primacy does come under threat, Bitcoin presents a more controllable or, at least, more transparent alternative than a foreign currency such as the Chinese yuan. \u201cThe best-case scenario for the US is that the dollar remains the world\u2019s reserve currency. But if we get to the point where that\u2019s at risk, we\u2019re better off moving to bitcoin than something like the Chinese yuan,\u201d he adds.<\/p>\n

Shifting Institutional Allocations<\/p>\n

On the institutional front, Bitwise has already observed a noticeable shift in how investors allocate to crypto. As recently as two years ago, holding 1% in Bitcoin or other digital assets was considered relatively aggressive for a diversified portfolio. This allocation was meant to capture speculative gains while limiting exposure to what still felt like a nascent, unpredictable market.<\/p>\n

Today, however, with a new level of government-endorsed legitimacy and more regulated pathways to invest, the firm is seeing more clients adopt allocations nearing 3%. Hougan notes that this trend reflects a profound change in perception: Bitcoin is no longer just a gamble; it is a credible alternative asset. \u201cAs more of the world wakes up to the massive derisking we\u2019ve seen in bitcoin, I think you\u2019ll see this number rise to 5% and beyond,\u201d he forecasts.<\/p>\n

At press time, BTC traded at $87,865.<\/p>\n

\"Bitcoin<\/p>\n","protected":false},"excerpt":{"rendered":"

In its latest investor memo, titled \u201cThe Great Derisking of Bitcoin,\u201d Bitwise Asset Management has taken a bold stance on the future of the world\u2019s original cryptocurrency. Chief Investment Officer Matt Hougan delivered a detailed analysis in a dispatch dated March 25, 2025, stating, \u201cNow is the best time in history to purchase bitcoin (on…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[119],"tags":[56,55,69,61,120,121],"class_list":["post-3871","post","type-post","status-publish","format-standard","hentry","category-bitcoin","tag-bitcoin","tag-bitcoin-news","tag-bitcoin-price","tag-btc","tag-btc-news","tag-btc-price"],"_links":{"self":[{"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/posts\/3871","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/comments?post=3871"}],"version-history":[{"count":0,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/posts\/3871\/revisions"}],"wp:attachment":[{"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/media?parent=3871"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/categories?post=3871"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/tags?post=3871"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}