Matt Hougan: Bitcoin’s Short-Term Pullback Due to AI and Gold, Rebound Only a Matter of Time

▲ Bitcoin (BTC), Gold, U.S. Dollar (USD) / ChatGPT-generated image

Bitcoin (BTC) is undergoing a short-term correction due to capital flowing into artificial intelligence stocks and the precious metals market. However, it is expected to secure strong rebound momentum as institutional improvements and macroeconomic changes intersect.

According to cryptocurrency-focused outlet The Daily Hodl on February 17 (local time), Bitwise Chief Investment Officer Matt Hougan cited the explosive growth of the artificial intelligence (AI) industry and the strength of precious metals such as gold and silver as the main reasons behind Bitcoin’s recent price decline. Hougan analyzed that liquidity that had been flowing into Bitcoin temporarily stalled as investor attention shifted to AI-related stocks. He also pointed out that gold, classified as a safe-haven asset, has reached record highs, relatively overshadowing Bitcoin’s appeal as a store of value.

Hougan emphasized that the current downturn is merely a temporary shift of capital rather than a fundamental flaw in the market. Bitcoin continues to maintain strong fundamentals, and institutional accumulation has steadily progressed even as market participants focus on AI and precious metals. He added that if AI technology development converges with the virtual asset ecosystem, it could serve as a catalyst to enhance Bitcoin’s long-term utility.

As key catalysts that could reverse market sentiment, Hougan mentioned the potential passage of the U.S. crypto market structure bill, the CLARITY Act, and the expansion of macroeconomic liquidity. He predicted that securing legal clarity would attract large-scale institutional capital that had been hesitant due to regulatory risks, fundamentally reshaping the market landscape. In addition, as global central banks increasingly adopt accommodative monetary policies, liquidity injected into the market is highly likely to flow into risk assets such as Bitcoin.

The virtual asset market is currently entering a phase of consolidating energy while digesting short-term negative factors. Hougan noted that inflows through spot Bitcoin ETFs continue and that investors are beginning to recognize Bitcoin as an essential asset for portfolio diversification. He believes that the popularity of AI and precious metals will not last forever and that the time is not far off when investors refocus on the overwhelming returns offered by virtual assets.

Historically, Bitcoin has demonstrated even stronger rallies after undergoing semiannual or quarterly corrections. Hougan advised investors to look beyond current market noise and focus on structural changes and the process of institutional integration. The moment when robust regulatory guidelines are established and global economic stimulus measures gain momentum could mark the beginning of Bitcoin breaking past its previous all-time high and writing a new chapter in its history.

Disclaimer: This article is for investment reference only, and no responsibility is taken for investment losses based on it. The content should be interpreted solely for informational purposes.