Bitcoin’s Crisis Paradox Decoded: Bitwise CIO Explains ‘Dip Then Rip’ Phenomenon

Bitwise Chief Investment Officer Matt Hougan explained Bitcoin’s (CRYPTO: BTC) often contradictory behavior during market crises, despite its narrative as an inflation hedge.
What Happened: In a research note released Tuesday, Hougan said that short-term price dips that Bitcoin experiences during economic turbulence are due to increased market uncertainty. This uncertainty amplifies the perceived riskiness of the asset, leading to a temporary decrease in the asset’s value, also known as a “discount factor.”
Hougan used the example of tariff concerns, which have battered the apex cryptocurrency over the past month. While tariffs increase the riskiness in the short term, they increase the long-term price target owing …Full story available on Benzinga.com

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