Matt Hougan: BTC Is Still in Its ‘Teenage State’
Bitwise Asset Management Chief Investment Officer Matt Hougan took to social media to defend Bitcoin (BTC) against a wave of criticism, arguing that skeptics judging the asset as a failed store of value are ignoring the volatile “teenage phase” necessary for any new monetary asset to mature.
His comments were a direct challenge to a growing narrative, amplified by a nearly 50% drawdown from its all-time high and recent headlines questioning the cryptocurrency’s purpose.
Bitcoin’s Volatility Meets Institutional Impatience
The debate reignited after Bloomberg published a report framing the current market downturn as an “existential” struggle for Bitcoin, asking what the asset is actually for if it fails as a hedge, payment rail, or speculative vehicle.
Former Merrill Lynch trader Tom Essaye, quoted in the Bloomberg piece, added fuel to the fire, stating flatly that “Bitcoin is not replacing gold, it’s not digital gold” and dismissing its utility as an inflation or chaos hedge.
Hougan responded to these takes, rejecting the premise that Bitcoin must emerge from nothing as a fully formed, gold-like asset. He described Bitcoin in 2009 as “100% speculation,” projecting a future in 2050 where it is “0% speculation” and owned by central banks.
“You cannot travel from 100% speculation to 0% speculation without ticking every gradient in between,” Hougan posted. “The reason it doesn’t fit any individual box right now is it’s in the uncomfortable middle. But that’s a necessary part of the journey.”
His defense comes at a time when the price action of the king cryptocurrency is testing investor patience. The asset recently shed thousands of dollars off its value, following U.S. President Donald Trump’s announcement of a 10% temporary global tariff.
Meanwhile, Google searches for “Bitcoin is dead” have spiked to levels not seen since the FTX collapse in late 2022, a metric that some traders view as a contrarian signal that a bottom may be forming.
A Historical Precedent for Price Swings
Hougan’s argument is rooted in a historical parallel he first detailed in a 2018 Forbes article, which he recirculated amid the current debate. At the time, he pointed to gold’s performance after the U.S. left the gold standard in 1971.
Following Nixon’s decision, gold was set loose from its moorings, experiencing massive volatility as it fought to establish itself as an independent store of wealth. Furthermore, in 1974, the precious metal rose 73%, only to fall 24% in 1975. In 1981, it lost 33% of its value after being up 121% just two years prior.
“If you had asked someone in 1975 if gold was a store of value, they’d have pointed to that 24% drop,” Hougan implied in his prior analysis. He argued that Bitcoin is following the same trajectory: a rapidly appreciating price that slows over time, accompanied by high-but-declining volatility.
“Either you believe it’s literally impossible to create a digital store of value, or you have to imagine it passing through exactly this teenage state,” insisted the Bitwise CIO.
His framework suggests the current drawdown, which has seen BTC fall roughly 50% from its October 2025 peak near $126,000, fits the pattern of an asset class maturing rather than failing.
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