Key Highlights:
- Bloomberg analysts question the real-world purpose of Bitcoin (BTC).
- Matt Hougan, CIO of Bitwise, pushed back this narrative in an X post.
- Bitcoin price hovering around $65,000 as of February 23, 2026.
People who have been against Bitcoin are back at attacking it after the cryptocurrency’s price dropped below $70,000, sparking debate in crypto circles. Critics are now questioning the core use of BTC. A narrative has come up that it is not a strong inflation hedge, not the most efficient way to pay and not even the best option for speculation.
To this narrative, Matt Hougan, CIO of Bitwise disagreed and said that BTC is still growing as a store of value and is in its early “teenage” stage, not as stable or established as gold yet. He shared these views through social media platform X, today, February 23, 2026.
Isabelle Tan Lee and Vidana Hajric from Bloomberg highlighted crypto’s main challenge, showing it has real purpose beyond just price swings. Another critic Tom Essaye said Bitcoin doesn’t have the practical value gold has and called it mostly speculation, especially when better hedging options exist and questioned whether BTC even belongs to investors who usually avoid risk.
Hougan’s Defense: A Journey, Not a Snapshot
Matt Hougan rejected the criticism, calling them “terrible take,” and compared Bitcoin to a newborn in 2009, completely speculative back then, but likely far less so by 2050 if central banks start holding it regularly. According to his post, he thinks that the cryptocurrency is going through a natural phase, very volatile now, but as the time passes, it will become more and more stable due to its limited supply and its increase in demand within the institutions.
According to Hougan, the cryptocurrency is stuck in an uncomfortable phase and it does not fit into traditional categories yet because it is still in a transitional phase, evolving into a stable store of value. His perspective reflects increasing institutional confidence, even as short-term factors like AI-driven liquidity shifts create market noise.
Market Context and Road Ahead
Bitcoin saw a great fall in 2026 as its competitor (gold) rose to glory and hit the $5,500 mark due to tariffs and global tensions. These global tensions are also one of the reasons why Bitcoin lagged and started to behave like a risk asset.
At press time, the price of the token stands at $65,046.37 with a dip of 4.3% in the last 24-hours as per CoinGecko.
New regulations like the CLARITY Act could help bring stability, making Bitcoin more appealing as a hedge during high inflation. Matt Hougan believes that as adoption grows, Bitcoin will gradually become less risky, encouraging investors to focus on a long-term view.
Also Read: Bitcoin Price Risks Drop to $55k as Retail Activity Hits Bear Market Levels
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