Bitwise: The world is on the brink of "extreme chaos", tariffs and debt crises will drive Bitcoin soaring

As global economic and political uncertainty increases and market volatility intensifies, two senior executives at asset management giant Bitwise believe that Bit is facing a "generational investment opportunity". They pointed out that changes in global trade decisions, central bank monetary policies, and market sentiment could bring a new round of price spikes for Bit.

Political and economic turmoil, Bit may become a "generational opportunity"

Bitwise's Chief Investment Strategist Jeff Park believes that despite the current global economic turmoil, various macroeconomic signals indicate that Bit may be in a potential major upward cycle.

World is literally on the brink of max chaos (tariff, debt ceiling, deglobalization) and max retardation (unprecedented tax cut, imminent YCC, gold run tail risk)—

And BTC IV percentile is lowest all year and you dont see this generational opportunity so no we are not the same. pic.twitter.com/8iAPUDlQIK

— Jeff Park (@dgt10011) February 16, 2025

Park mentioned that on February 12, the Republican-controlled House of Representatives proposed a plan to raise the debt ceiling by $4 trillion while also increasing government spending, which could stimulate the market. In addition, President Trump has recently threatened to implement tariff policies, which could further disrupt international trade:

The world is literally on the brink of max chaos, and Bit's implied volatility (IV) has dropped to the lowest level of the year. If you still can't see this generational investment opportunity, then we are indeed not the same.

By the way, the decrease in Bit's implied volatility indicates that the market's risk expectations for Bit are at a historical low.

He also warned that the market may face "extreme irrationality", including a sharp rise in gold prices, the Republican Party's potential $4.5 trillion tax cut plan, and the Federal Reserve's possible implementation of yield curve control (YCC), which aims to stimulate borrowing and investment by controlling long-term interest rates.

(Gold approaches $3,000, the People's Bank of China resumes gold purchases, supporting the RMB for three consecutive months)

Horsley: This year will be a watershed for Bit to go mainstream

"People are greatly underestimating the huge potential for Bit to enter the mainstream market this year." Bitwise CEO Hunter Horsley said yesterday, emphasizing that he has "never been more optimistic".

People are wildly underestimating the massive leaps Bit is going to take into the mainstream this year.

Never been more optimistic.

— Hunter Horsley (@HHorsley) February 17, 2025

He also pointed out that this year, people around the world will see:

1. More capital flowing into Bit ETFs
2. More companies purchasing more Bit
3. More countries starting to buy Bit
4. Mainstream asset management institutions allocating Bit investments for their clients
5. Banks and financial institutions launching services to help users access Bit
6. Regulatory authorities providing clearer and more favorable regulatory guidance
7. Continued increase in market demand for Bit driven by global geopolitical and monetary policy factors

You will also see more and more reputable people publicly expressing their belief in Bit, which will be a watershed year for Bit's development.

(JPMorgan: Gold and Bit have become important investment structures, and the debasement trade will continue to thrive)

Is the market sentiment in fear an investment opportunity?

According to CMC's "Crypto Fear & Greed Index", the market sentiment index is currently 38 (out of 100), indicating that the market sentiment is in "fear", which echoes the chaotic market atmosphere mentioned by Park.

As global economic uncertainty increases and the market's attention to policy changes heightens, whether Bit can enter the mainstream and usher in a new round of price increases remains to be observed.