Why Bitwise's Matt Hougan Thinks Strategy's Bitcoin Era Is Fading

Bitwise Chief Investment Officer Matt Hougan believes that Michael Saylor’s Strategy will play a much smaller role in driving Bitcoin demand in the next market cycle. In his latest market analysis, Hougan noted that Strategy has adopted a new framework for STRC, allowing it to periodically sell Bitcoin to fund dividend obligations. While he does not expect the company to become a major seller, its buying and selling will now depend on market conditions, making it less of a constant source of demand.

Hougan acknowledged that Strategy could still remain a net buyer if Bitcoin prices recover, but its market influence will likely pale compared to the previous cycle. He expects the next wave of Bitcoin accumulation to be led by institutions with significantly larger pools of capital, such as global banks, asset managers, pension funds, endowments, sovereign wealth funds, and financial advisers. This transition is already underway: Morgan Stanley has launched proprietary Bitcoin ETFs, Wells Fargo has added BTC exposure to model portfolios, Texas became the first US state to fund a strategic Bitcoin reserve, and several sovereign wealth funds are evaluating allocations.

Despite recent ETF outflows, Hougan noted that Bitcoin ETFs have attracted over $50 billion since launching in 2024 and are now available on most major financial adviser platforms. Meanwhile, HashKey Group Senior Researcher Tim Sun commented that a slowdown in Strategy’s purchases could actually benefit the market. By unwinding the distortion caused by Strategy’s financing-driven buying, Bitcoin could establish a stronger price floor based on genuine demand, leading to a healthier market structure.

Source: https://cryptopotato.com/why-bitwises-matt-hougan-thinks-strategys-bitcoin-era-is-fading/