Bitwise CIO: US Politicians’ Bitcoin Embrace Signals Greater Potential
Bitwise CIO – After attending a Bitcoin conference in Nashville, Matt Hougan, Bitwise’s Chief Investment Officer, shared his key takeaway: “We’re not bullish enough.” In a July 31 post, Hougan highlighted the enthusiastic support for Bitcoin from several influential United States politicians, prompting him to “rethink what’s possible” for the cryptocurrency.
Political Promises Fuel Optimism
The conference saw significant promises from notable political figures. Republican candidate Donald Trump proposed building a strategic national Bitcoin stockpile. Wyoming Senator Cynthia Lummis announced a Bitcoin reserve bill aimed at addressing the country’s $35 trillion debt crisis. Independent candidate Robert F. Kennedy Jr. vowed to have the US Treasury purchase 500 Bitcoin daily until the reserve reaches 4 million Bitcoin.
“These ideas would have been the stuff of daydreams a year ago. But after what I witnessed last week, they look more likely than not,” Hougan stated.
Shifting Perceptions of Bitcoin
Hougan reflected on the dramatic shift in Bitcoin’s perception over the past two years. “Less than two years ago, FTX was collapsing in a historic fraud, Bitcoin was trading at $17,000, and skeptics were dancing on crypto’s grave. Now politicians are openly talking about building a ‘Bitcoin Fort Knox.’”
He also pointed out the US Department of Justice’s recent partnership with Coinbase, occurring just 12 months after the US Securities and Exchange Commission sued the firm for operating as an unregistered securities exchange.
The Popularity of Bitcoin Among Politicians
Hougan acknowledged that many politicians might not genuinely support Bitcoin but are instead responding to its growing popularity among Americans. “Politicians are embracing crypto because Americans are embracing crypto.”
Future Price Predictions
While Hougan did not provide a specific price prediction for Bitcoin, notable figures in the crypto space have offered their forecasts. Michael Saylor, the mastermind behind MicroStrategy’s Bitcoin investment strategy, predicted Bitcoin could reach $13 million by 2045, with a bullish case scenario of $49 million. This aligns closely with a recent prediction by crypto asset manager VanEck, which estimates Bitcoin could reach $52 million by 2050.
Current Market Performance
Despite the bullish sentiment, Bitcoin’s price has experienced a downturn. According to CoinGecko data, Bitcoin is down over 8% since reaching nearly $70,000 on July 29 and remains 13.4% below its all-time high of $73,737 set on March 14.
FAQ
What prompted Matt Hougan of Bitwise to say “We’re not bullish enough” on Bitcoin?
Matt Hougan made this statement after attending a recent Bitcoin conference in Nashville where he heard several influential US politicians express strong support for Bitcoin. Their bold promises and plans for Bitcoin led him to reconsider the cryptocurrency’s potential and future.
How has the perception of Bitcoin shifted in recent years?
The perception of Bitcoin has shifted dramatically. Less than two years ago, Bitcoin was struggling with issues like the collapse of FTX and was trading at $17,000. Now, with increasing political support and discussions about creating a “Bitcoin Fort Knox,” Bitcoin is seen as a more legitimate and valuable asset.
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