Bitwise Model Suggests Bitcoin Fair Value at $224,000 as Sovereign Hedge

A Bitwise Europe report estimates bitcoin's theoretical fair value at $224,000 per coin, according to CoinDesk. This figure is based on a model proposed by Greg Foss in 2021, which treats bitcoin as a credit default swap on G20 sovereign bonds. The report highlights rising sovereign stress, such as record Japanese bond yields and increased global borrowing, as factors that could enhance bitcoin's appeal as a decentralized hedge against government debt risk. However, Bitwise notes near-term challenges, including weaker demand linked to Strategy's STRC funding vehicle and bitcoin's subdued valuation compared to U.S. large-cap tech.