Bitwise Cio Matt Hougan believes that the market is the impact of the proposed strategic crypto reserve of former President Donald Trump, with the argument that the initiative will ultimately be Bullish for digital assets despite the initial volatility.
Hougan projected that the final reserve will mainly be drawn up from Bitcoin (BTC) and will probably be much larger than the industry expected.
He also argued that other countries can speed up their own bitcoin acquisitions in response and that it is unlikely that the US is unlikely to sell its participations for a very long time – like never.
Care for industry
Trump’s announcement on 2 March, with a reserve consisting of digital assets outside of Bitcoin, initially sent BTC rising from $ 85,000 to $ 95,000. However, by 3 March the prices were withdrawn as skepticism about the recording of altcoins in the midst of rising geopolitical tensions.
According to Hougan, the sale was driven by concern that the structure of the reserve was political than strategic, which caused a negative sentiment to penetrate the market.
Some market leaders, including Coinbase CEO Brian Armstrong and Castle Island Ventures Co-founder Nic Carter, criticized the recording of speculative assets such as Cardano (ADA). Bitwise CEO Hunter Horsley also argued for a reserve for Bitcoin only, in accordance with a broader market sentiment that such a movement would offer greater stability.
Hougan argued, however, that the market reacts exaggerated. He said that the first proposal has shifted the conversation, making a Bitcoin all-reserve a more feasible result.
According to Hougan:
“The boldness of the first proposal has broadened the Overton window.”
He also argued that the announcement was the first version of the proposal and will probably evolve as the industry gives more feedback to the Trump administration.
Hougan also stated that, regardless of whether the final version of the proposal is changing, the core idea of a reserve supported by the government remains a long -term positive for industry.
Global ripple effects
Hougan also emphasized that the relocation could have wider geopolitical implications outside the US, with the argument that other countries can now put themselves under pressure to set up their own Bitcoin reserves – accelerate global acceptance.
Hougan noticed:
“El Salvador, Bhutan and Abu Dhabi have already made strategic Bitcoin acquisitions. If you are Honduras, Mexico or Guatemala and you see both El Salvador and the US that make movements, can you afford to be excluded? If you are Dubai, Qatar or Saudi Arabia, the management of Abu Dhabi has put pressure to act? “
Crypto consultant David Sacks from the White House will organize a crypto top on 7 March, where market leaders are expected to insist on a revised reserve structure. Sacks also recently revealed that Trump will reveal more details about the reserve during the top.
Long -term implications
Hougan also tackled the concern that future administrations could reverse the policy, with the argument that political realities make such a step unlikely.
He noted that crypto has strong support in certain demography of voters, making it a difficult issue for Democrats to fully resist.
According to Hougan:
“The embrace of the Gop of Crypto won votes in the last elections, while democratic hostility became little. Every purchased crypto will probably be kept for a long time, similar to the American gold reserves. “
Although the initial market reaction was mixed, Hougan argued that creating an American strategic crypto reserve signals a turning point.
Whether the final reserve now has several assets or only becomes Bitcoin, the broader collection meals is that the US government now considers crypto as a strategically actively acting that could have permanent consequences for global markets.
