Trump’s new bill means ‘buy Bitcoin now’ says Bitwise CIO
The Trump administration’s “big, beautiful bill” passed this week with tax cuts, a higher debt ceiling and more spending.
According to Bitwise Chief Investment Officer Matt Hougan, it sent a clear signal to investors: “Buy Bitcoin now.”
In an interview with TheStreet Roundtable, Hougan said Washington has proven “incapable” of cutting deficits, even when voters expect fiscal restraint.
“Nothing stops this train. I think that's the message from the big, beautiful bill, right?” he added, borrowing investor Lynn Alden’s catchphrase to describe the relentless growth of U.S. debt.
“It can't dramatically reduce our spending in a way that lowers our long-term deficit,” Hougan continued. “To me, it's significantly strengthened this case for owning some Bitcoin,” he said.
Debt grows — so does the case for Bitcoin
Hougan argued that politicians have little incentive to tighten belts. Citing billionaire hedge-fund founder Ray Dalio, he said the “easiest thing for politicians to do is to debase their currency to inflate away their debt. And so you should bet on that happening.”
Bitcoin, with its fixed 21 million supply, offers a hedge against that slow erosion of purchasing power, he maintained.
From a short-term macro standpoint, the new legislation “doesn’t gut government spending, which is good for GDP,” Hougan acknowledged.
Over the longer term, however, bigger deficits mean investors “need to own something else, something non-fiat based. And the answer there is Bitcoin.”
Dollar faces 'aggressive' slide versus real assets
When asked where the U.S. dollar heads next, Hougan distinguished between its performance against other fiat currencies and its value versus hard assets.
“If you measure the dollar against real assets like Bitcoin and gold and real estate, I think it will continue to devalue aggressively,” he said.
Traditional currency gauges such as the DXY index compare the greenback to peers like the yen and euro, “which in many cases are just as bad or worse than the dollar,” Hougan noted.
Trend shifts in foreign-exchange markets usually last “five to 10-year segments,” he said, and current domestic policy points toward a weaker dollar — though he “doesn’t think” another roughly 10% yearly drop is likely.
“The general direction is down,” Hougan concluded. “That’s really what we’re looking at and what we expect to continue to move in that direction in the coming years.”