Bitwise Predicts AI Crisis Will Boost Bitcoin

Matt Hougan, Bitwise's Chief Investment Officer, claims that Bitcoin (BTC) could increase in the long term across various economic scenarios. In a memorandum dated October 14, 2026, he argues that both an economic crisis and a productivity boom or moderate growth could benefit the asset due to its limited supply and increasing adoption. Hougan outlines three scenarios: 1) Artificial intelligence boosts productivity, potentially leading to a shift of value towards scarce assets like Bitcoin. 2) An AI bubble bursts, causing a recession and debt defaults, where Bitcoin would initially fall but recover due to interest rate cuts and economic bailouts. 3) Economic growth of 3% and interest rates at 4%, where flows into ETFs and adoption by financial advisors would sustain demand. Hougan warns that Bitcoin's price will not rise steadily, recalling that it lost 50% of its value during the COVID-19 panic before recovering. He also identifies risks such as quantum computing and adverse government policies that could impact his thesis.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.