Coinspeaker
Bitwise Rethinks Bitcoin Strategy amid US Politicians’ Bold Crypto Promises
After several key US politicians endorsed Bitcoin at a recent conference in Nashville, Bitwise Chief Investment Officer Matt Hougan declared:
“We’re not bullish enough.”
Hougan revealed this in his July 31 post, reflecting on promises made by influential figures and prompting him to rethink Bitcoin’s potential.
Among these promises were Donald Trump‘s proposal to establish a strategic national BTC reserve, Wyoming Senator Cynthia Lummis’ announcement of a BTC reserve bill to address the $35 trillion debt, and Robert F. Kennedy Jr.’s commitment to have the US Treasury purchase 500 BTC daily until reaching 4 million.
Hougan commented on the political shift, stating:
“Less than two years ago, FTX was collapsing in a historic fraud, BTC was trading at $17,000, and skeptics were dancing on crypto’s grave. Now politicians are openly talking about building a ‘Bitcoin Fort Knox’.”
Bitcoin’s Political Sway
Hougan highlighted the US Department of Justice’s recent partnership with Coinbase, just a year after the US Securities and Exchange Commission (SEC) sued the firm for allegedly operating as an unregistered securities exchange, underscores the shifting regulatory landscape.
He pointed out that many politicians might not genuinely support Bitcoin but are capitalizing on its growing popularity: “Politicians are embracing crypto because Americans are embracing crypto.” This political sway is seen as a crucial factor in Bitcoin’s potential rise.
Michael Saylor, known for his Bitcoin investment strategy at MicroStrategy, forecasted BTC to reach $13 million by 2045, with a bullish scenario hitting $49 million. Crypto asset manager VanEck also predicted Bitcoin could reach $52 million by 2050.
Photo: CoinMarketCap
Despite this bullish outlook, BTC has seen a decline of over 7.80% since almost hitting $69,800 on July 29. It remains 12.78% below its all-time high of $73,750 set on March 14.
Institutional Inflows Fuel Bitcoin Adoption
Hougan also noted significant institutional interest in Bitcoin ETFs. Since the SEC approved 11 spot Bitcoin ETFs in January 2024, they have attracted over $12.15 billion in assets. Hougan expects institutional inflows to accelerate, potentially surpassing $5 billion by the year-end.
Hougan’s stance reflects a broader trend of increasing institutional and political acceptance of Bitcoin. This shift could pave the way for substantial growth and mainstream adoption, significantly impacting the crypto landscape.
Bitwise Rethinks Bitcoin Strategy amid US Politicians’ Bold Crypto Promises
