Matt Hougan, Chief Investment Officer at Bitwise, stated in an interview with Paul Barron that the bombing of Iran, authorized by Donald Trump, highlighted the practical utility of decentralized finance.
He explained that right after the news broke, several traders and macro hedge funds started opening positions on the Hyperliquid platform. Oil and gold traded there while traditional markets remained closed. Hougan believes institutional investors will soon need to adopt stablecoin wallets and DeFi tools.
Trump's Policy Reversal: Market Reaction
Hougan highlighted Trump's Truth Social post as a major market catalyst. The president criticized banks for pressuring the stablecoin industry regarding SAB 121. Following this post, the odds of the Clarity Act passing on Polymarket jumped from 62% to 78%.
Bitcoin subsequently rallied 7–8%, nearing the $73,000–$74,000 mark, while Ether posted even stronger gains. Hougan also pointed out that Kraken finally secured a Federal Reserve master account, describing it as a rare regulatory green light following years of pushback.
Key Risks and Expectations
Despite Bitcoin's 22% year-to-date pullback, spot BTC exchange-traded funds continue to attract capital inflows. Hougan notes that long-term investors simply keep accumulating the asset.
He also flagged ongoing geopolitical risks. Potential infrastructure damage in the Strait of Hormuz could drive oil prices up to $150 per barrel. According to Hougan, a market repricing could soon target DeFi projects with actual business models, while the NFT and meme token sectors remain highly speculative.