Bitcoin’s sharp pullback isn’t a reason for panic, according to Bitwise Chief Investment Officer Matt Hougan, who says the recent slide is nothing more than “short-term noise.” He emphasized that Bitcoin’s long-term value comes from the service it provides—offering a secure, non-sovereign way to store wealth—as global debt rises and demand for digital value storage grows.

Hougan compared Bitcoin to a digital service rather than a traditional asset, arguing that its worth increases as more people seek access to self-custodied value protection. Because the only way to use Bitcoin’s service is to own it, he said, demand naturally strengthens over time. This scarcity-driven model, he noted, helps explain Bitcoin’s massive growth over the past decade despite market volatility.

Market analysts remain divided on whether the current drop signals deeper trouble, but several experts say the downturn looks more like a macro correction than a new crypto winter. They point to rising institutional adoption and stronger industry infrastructure as signs the long-term outlook for Bitcoin remains solid.