‘Bitcoin Was the Only Answer To The Debt Crisis’ – Strive CEO Reportedly Backs Growing Wall Street Move Into Crypto

• Strive CEO Matt Cole, who was once a Bitcoin skeptic, said his conviction formed while managing one of the largest U.S. Treasury portfolios and engaging directly with Federal Reserve and Treasury officials.
• He argued that continuous government money printing is bipartisan and unlikely to stop, creating long-term “tailwinds for Bitcoin.”
• BlackRock’s Larry Fink and hedge fund manager James Lavish have also cited concerns about debt and inflation as reasons investors are turning to Bitcoin and gold.

Matt Cole, CEO of Strive (ASST), reportedly said that the U.S. debt crisis and ongoing fiat currency debasement convinced him that Bitcoin (BTC) is the ultimate hedge. 

Once a skeptic, Cole told Bloomberg that his perspective changed while managing a large portfolio of U.S. Treasuries and engaging directly with the Federal Reserve and Treasury. “It actually was the reason I became a bitcoiner in the first place,” Cole said. 

“Talking directly to the Fed, to the Treasury, gave me conviction that Bitcoin was the only answer to the debt crisis and the fiat currency debasement.”

– Matt Cole, CEO, Strive

Strive’s stock gained 1.6% in midday trade on Thursday, with retail sentiment around the company continuing to trend in ‘extremely bullish’ territory amid ‘extremely high’ levels of chatter over the past day. Meanwhile, Bitcoin’s price continued to plummet, down 3.4% in the last 24 hours. The apex cryptocurrency was trading at around $107,700 at the time of writing.

The ‘Debasement Trade’

For Cole and other advocates, Bitcoin is both a hedge against debasement and a tool for financial independence. He noted that Wall Street is beginning to adopt this perspective, with the “debasement trade” emerging as a broader investment strategy. This is when traders look to protect wealth against the gradual devaluation of fiat currencies caused by governments and central banks expanding the money supply faster than economic output grows. 

Cole described the problem as bipartisan and deeply entrenched. “The U.S. government’s never going to stop printing money,” he said. “The debt crisis is a bipartisan issue, and while I’d love to see it solved, I’m not optimistic. That only provides more tailwinds for Bitcoin and people that invest in it.”

Wall Street Turns To Bitcoin For Safety

Other industry leaders share a similar outlook. BlackRock CEO Larry Fink cited rising U.S. debt and concerns about the weakening of fiat currencies as drivers of investor demand for Bitcoin and gold at a conference in Saudi Arabia earlier this week. 

Meanwhile, hedge fund manager James Lavish told Coin Telegraph that growing inflation and liquidity pressures could prompt investors to seek protection in scarce assets like Bitcoin.

Despite gaining roughly 50% over the past 12 months, Bitcoin’s strong rally stalled in October. The token, which hit a record above $126,000 earlier this month, now trades about 14.5% lower. Strive, a Bitcoin digital asset treasury, announced that it had purchased an additional 72.3 Bitcoin earlier this week, bringing its total holdings to 5,957.9 tokens.

Read also: Bitcoin Dips, Triggers $800 Million In Crypto Liquidations After Powell’s December Warning

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