TechFlow news — On December 19, Matt Hougan, Chief Investment Officer at Bitwise, shared his perspective on X, elaborating on why he believes the current bullish trend in the cryptocurrency market will continue.
Although the Federal Reserve's latest policy statement caused a short-term market shock—reducing expectations for interest rate cuts next year from four to two—Hougan views this as merely a temporary blip within the broader bull market. He argues that the crypto market has developed endogenous momentum independent of Fed policy, driven by four core trends:
- A clear shift toward supportive regulatory attitudes in Washington
- Accelerating institutional adoption and sustained inflows into ETFs
- Strategic accumulation of Bitcoin by government and corporate entities
- Breakthrough advancements in programmable blockchain technology
From a technical standpoint, Bitcoin’s 10-day exponential moving average (around $102,000) remains above the 20-day moving average (approximately $99,000). Hougan notes that this classic technical indicator has historically been a reliable gauge of market direction.
Hougan emphasizes that the cryptocurrency market is now in a new multi-year bull cycle, and expects that a 50bps rate cut will not alter this trajectory.
