Bitcoin has had a wild ride this year. However, Bitwise Chief Investment Officer Matt Hougan sees a major shift in its trajectory.

In fact, the exec believes that this is the best time in history to buy Bitcoin on a risk-adjusted basis.

Bitcoins Historic Risks Are Gone

In his latest blog post, Hougan reflected on his early experiences with the cryptocurrency, recalling how in February 2011, when Bitcoin first crossed the $1 threshold, it seemed like a far-flung, risky asset. At that time, investing in BTC was a gamble due to various risks, including unregulated exchanges, technology uncertainties, and custody concerns, he added.

The worlds largest exchange at the time was New Liberty Financial, a less credible platform. Hougan admits that despite seeing Bitcoins potential, he did not invest, and he highlights the fact that many others share his regret of missing out on the assets massive price gain.

However, Hougan asserted that the BTC market today is a different story. In his view, all the major existential risks associated with Bitcoin have been effectively mitigated. In particular, he pointed to the rise of regulated, reliable exchanges like Coinbase, as well as custodians like Fidelity offering institutional-grade services for Bitcoin.

Even concerns about BTCs potential to be used for illegal activities have been addressed, as regulations have become clearer and more widespread.

Despite these advancements, the Bitwise exec acknowledged one lingering fear—the possibility of a government ban on Bitcoin, which would be a significant blow to its growth and value. He frequently cited this risk in conversations and presentations, particularly drawing a historical parallel to the US governments confiscation of gold in 1933.

However, President Donald Trumps signing an executive order to establish the US Strategic Bitcoin Reserve has eliminated this fear. This move, Hougan argues, removes the last major existential risk BTC faced.

The creation of this reserve implied that the US government has recognized Bitcoins potential as a strategic asset, even placing it as a backup in the event that the US dollars dominance as the worlds reserve currency comes into question.

Hougan pointed out that this decision is not an endorsement of Bitcoin as a threat to the dollar but rather an acknowledgment that it is a far better alternative than other global currencies, such as the Chinese yuan.

This step by the US government, according to Hogan, signifies that Bitcoin has now entered a new phase where it is embraced as a legitimate, stable asset in the global financial system. The removal of this final existential threat, in his view, makes now the ideal time to invest in BTC.

Major Turning Point?

Beyond Bitcoin, recent regulatory developments, especially after the reelection of Donald Trump as President of the US, have significantly impacted stablecoins, meme coins, and the broader cryptocurrency market.

For instance, the Trump administration has shown support for stablecoins with legislation like the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, which aims to create a regulatory framework for these assets.

Last month, the US Securities and Exchange Commission (SEC) clarified that most meme coins are not considered securities under federal law. This determination means transactions involving these coins do not require registration with the securities watchdog, and holders are not afforded protections under federal securities laws.

Meanwhile, the SEC has recently withdrawn several legal actions against cryptocurrency entities in a major shift in regulatory approach.