'All Roads Lead To Bitcoin,' Says Bitwise Exec Matt Hougan In Light of AI Bubble

Bitcoin (CRYPTO: BTC) could benefit from an artificial intelligence boom, continued economic uncertainty or even an AI-driven market crash, according to Bitwise Chief Investment Officer Matt Hougan, who says the cryptocurrency is entering a more mature institutional growth phase.

Bitcoin Will Win In Every AI Scenario

In a Coinage interview on Nov. 2, Hougan outlined three possible outcomes that could ultimately benefit Bitcoin.

• In an AI-driven era of economic abundance, scarce assets such as Bitcoin could become increasingly valuable.
• If AI growth continues at its current pace, institutional adoption, wealth manager allocations and ongoing fiat currency debasement could support Bitcoin’s long-term outlook.
• Even an AI bubble collapse resembling the dot-com crash could eventually benefit crypto if the Federal Reserve responds with monetary stimulus.

"Regardless of which path you go on, sort of all those roads lead to Bitcoin doing well," Hougan said.

An AI-driven market crash could still trigger near-term selling pressure before any potential monetary policy response.

Could Bitcoin Rally After Midterm Elections?

Hougan believes Bitcoin has bottomed despite macroeconomic uncertainty and the Nov. 3 midterm elections.

He expects short-term volatility before a year-end recovery and stronger gains in 2027, describing the setup as “dip then rip” amid resilient institutional demand.

Hougan downplayed the impact of a potential Democratic congressional victory, citing continued SEC leadership.

The more consequential political event for crypto could be the 2028 presidential election, he Hougan.

Is BTC Entering A Slower Institutional Bull Market?

Hougan expects Bitcoin’s next bull market to be driven by steady institutional allocations rather than speculative rallies.

Financial advisors are increasingly considering 2-5% Bitcoin allocations, while some institutions are exploring exposure of up to 10%.

He cited Bitcoin’s more recent 50% drawdown, compared with historical declines of nearly 80%, as evidence of market maturity.

Hougan also expects crypto returns to depend more on real-world adoption, protocol revenue and tokenomics, potentially benefiting DeFi platforms like Uniswap, Aave and Morpho.

For Bitcoin, he anticipates slower, sustained growth fueled by institutional demand.

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