There's Silver Lining to This Bitcoin Correction, According to Bitwise Exec
Alex Dovbnya A Bitwise exec has predicted that a Bitcoin correction would be short-lived Cover image via www.freepik.com Matt Hougan, chief investment officer at cryptocurrency index fund manager Bitwise, has opined that the current correction will be "short-lived" if history is any guide. In fact, Bitcoin tends to outperform following such short-term dips in the long term. "Over the past decade, if you look at all the days SPX has fallen 2% or more, bitcoin is down on average by 2.62%. Gold, by comparison, has risen 0.11% on average, showing it's a better one-day hedge. But if you look out one year from these days, bitcoin is up 189% on average versus 7% for gold," Hougan said.As reported by U.Today, the U.S. stock market got clobbered following the release of a highly efficient and powerful model by Chinese startup DeepSeek. The shares of Nvidia collapsed by more than 17%, which is the biggest drop since March 2020. The market cap of the leading US chip maker has lost more than half a trillion dollars. Earlier today, Bitcoin hit an intraday high of $97,791, according to CoinGecko data. However, the cryptocurrency managed to recover swiftly, currently trading above the make-it-or-break-it $100,000 level.Some market observers were quick to take note of Bitcoin's strength. Chris Burniske of Placeholder VC has commented that the tech-heavy Nasdaq 100 index has actually underperformed the flagship cryptocurrency during the recent sell-off despite the fact that the former has a market cap of more than $27 trillion. It is also worth noting that Bitcoin is just 8% away from its record high that was recorded just seven days ago. Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available. About the author Alex Dovbnya Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at [email protected]. Related articles