Bitwise CIO Matt Hougan believes the market is underestimating the impact of Trump\u2019s crypto reserve, predicting it will be mostly Bitcoin and larger than initially thought.<\/p>\n\n\n\n
Despite initially including multiple altcoins, Trump\u2019s proposed crypto reserve will likely be almost entirely Bitcoin, according to Bitwise chief investment officer Matt Hougan. In a March 5 market note, Hougan stated that the market is misinterpreting the announcement.<\/p>\n\n\n\n
\u201cMarket participants have soured on the announcement because the proposed reserve holds more than Bitcoin,\u201d Hougan said. \u201cThe inclusion of small-cap assets in the announcement unnecessarily complicated matters.\u201d<\/p>\n\n\n\n
Trump first mentioned the reserve on March 2, listing Solana, XRP, and Cardano before later adding Bitcoin and Ethereum. However, Hougan believes that once the plan is finalized, Bitcoin will dominate the holdings.<\/p>\n\n\n\n
Bitcoin\u2019s price initially surged after the announcement but later dropped below $83,000, only recovering above $90,000 following Trump\u2019s decision to delay auto parts tariffs on Canada and Mexico.<\/p>\n\n\n\n
Some crypto leaders, including Coinbase CEO Brian Armstrong, have criticized the inclusion of altcoins, arguing that Bitcoin is the only asset suitable for a national reserve, comparing it to gold.<\/p>\n\n\n\n
Hougan also questioned the selection of certain altcoins, saying, \u201cThe inclusion of speculative assets like Cardano feels more calculating than strategic.\u201d However, he maintains that the market is misreading the situation and remains bullish on the long-term impact.<\/p>\n\n\n\n
Trump\u2019s initial proposals are rarely final, according to Hougan, and upcoming discussions with industry leaders at the White House crypto summit could refine the reserve\u2019s composition.<\/p>\n\n\n\n
Commerce Secretary Howard Lutnick has hinted that Bitcoin could receive special treatment, while other cryptocurrencies may be “treated differently\u2014positively, but differently.”<\/p>\n\n\n\n
If the US moves forward with a national crypto reserve, other countries may follow suit, Hougan suggested. He also believes that any crypto acquired by the US government will be held long-term, much like its gold reserves.<\/p>\n\n\n\n
Even if a Democrat takes office after Trump, selling off the reserve is unlikely, as “Democratic leaders won\u2019t want to alienate voters at little benefit to themselves.”<\/p>\n\n\n\n
Hougan pointed out that crypto-friendly policies helped Republicans gain votes in the last election, while anti-crypto stances didn\u2019t significantly benefit Democrats. He remains confident that the market will eventually recognize the bullish nature of Trump\u2019s crypto plans.<\/p>\n","protected":false},"excerpt":{"rendered":"
Bitwise CIO Matt Hougan believes the market is underestimating the impact of Trump\u2019s crypto reserve, predicting it will be mostly Bitcoin and larger than initially thought. Trump\u2019s Crypto Reserve Will Be Predominantly Bitcoin Despite initially including multiple altcoins, Trump\u2019s proposed crypto reserve will likely be almost entirely Bitcoin, according to Bitwise chief investment officer Matt […]<\/p>\n","protected":false},"author":10,"featured_media":2911,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[257,2,43],"tags":[],"class_list":{"0":"post-13856","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-bitcoin","8":"category-featured","9":"category-general-news"},"acf":[],"yoast_head":"\n