According to Woofun AI, the price-driving logic for Bitcoin is shifting from policy expectations toward macroeconomic hedging. Michael Busella, co-founder of New Classical Capital, emphasized that the current upward trend is not dominated by political factors in Washington. Instead, the market now views gold, the Swiss franc, and Bitcoin collectively as core assets for hedging against currency devaluation risks.
The U.S. national debt has surpassed the $40 trillion mark, and this macroeconomic debt pressure has become a key variable reshaping investment preferences. Although the Digital Asset Market Clarity Act aims to define whether tokens are securities or commodities, and it passed a House vote in 2025, the bill hit another roadblock in the Senate this month due to disagreements over enforcement authority.
Data compiled by Woofun AI shows that the initial legislative stall triggered hundreds of millions of dollars in outflows from both the Bitcoin ETF (IBIT.US) and the Ethereum ETF (ETHA.US). However, market sentiment reversed quickly, with a single-day inflow of over $1 billion into the Bitcoin ETF (IBIT.US) shortly thereafter. This demonstrates that investor tolerance for policy volatility is rising, and the pace of capital repatriation is far exceeding expectations.
Innovation in ecosystem tools has further solidified holding confidence. The emergence of new domestic lending products allows holders to access liquidity without selling their assets, significantly reducing the need to offload Bitcoin due to short-term cash requirements.
Busella, citing the views of his friends in Switzerland, pointed out that amid the massive accumulation of debt, allocating to scarce non-dollar assets is more pragmatic than waiting for legislative clarity. The Swiss franc, gold, and Bitcoin have all performed strongly, and this cross-asset correlation highlights investors' deep-seated concerns over the declining purchasing power of fiat currencies, rather than a simple bet on regulatory clarity.
Despite Bitcoin being included in the scarce asset portfolio, Busella still warns that its risk-asset nature remains unchanged, and macroeconomic conditions along with currency depreciation pressures will continue to drive price fluctuations. As votes on the Clarity Act face repeated delays, the disconnect between the legislative timeline and fundamental drivers is becoming increasingly apparent. This divergence in perception could allow macro hedging logic to play a more dominant role in market movements going forward.
Comments