Bitwise Chief Investment Officer Matt Hougan pushed back on surprise over crypto’s multitrillion-dollar valuations, arguing the numbers make sense once investors consider the enormous markets digital assets target. In a thread on X and a client memo, Hougan laid out why Bitcoin’s roughly $2.3 trillion market cap can be rationalized by comparing it to the much larger gold market, which exceeds $25 trillion.

Hougan highlighted that skeptics often underestimate market size when judging digital assets. Using a startup analogy, he explained that a company trying to displace Amazon would need nearly the entire e‑commerce market to reach a $2.3 trillion valuation, while a company disrupting gold would need only a modest share to reach the same level. That dynamic, he argued, helps explain how Bitcoin became one of the world’s largest financial assets despite lacking everyday utility; its value is rooted in a role as digital gold and a store of value.

Hougan also noted that Ethereum and Solana are aiming at even larger addressable markets. Those blockchains are positioned as infrastructure for the issuance, trading and settlement of stablecoins and tokenized assets—sectors tied to the global payments system and capital markets.

Estimates from industry sources such as SIFMA and Savills place the combined value of global stocks, bonds and real estate at scales that dwarf the gold market, underscoring the long-term opportunity for smart‑contract platforms to capture parts of those pools.

The message reframes crypto valuations as market‑sizing exercises: Bitcoin competes with gold, while Ethereum and Solana compete for payment rails, stablecoins and tokenized asset activity across global capital markets.