Bitwise CIO Rethinks Bitcoin’s Potential After Politicians’ Promises

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.

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