Bitwise CIO Hougan Says Bitcoin Market ‘Not Bullish Enough’

Following the Bitcoin2024 conference, Bitwise CIO Matt Hougan has issued a bold call to crypto investors, urging them to rethink BTC’s upside potential.

According to Hougan, the market is “not optimistic enough” about the flagship cryptocurrency, and recent developments at the conference have highlighted a shift that could affect Bitcoin’s future value.

Political figures support Bitcoin at Bitcoin2024 conference

As the cryptocurrency market grapples with volatility and regulatory uncertainty, investors have long been concerned about downside risks, often fearing that bitcoin “could go to zero.” However, Hougan believes that after what he witnessed last week at the Bitcoin2024 conference, the market is “not optimistic enough.”

His perspective is based on several announcements made at the event, which featured a list of political and financial figures expressing their support for bitcoin.

At the conference, presidential candidate Donald Trump announced plans for a national strategic bitcoin reserve, with the goal of making the United States the “crypto capital of the world.” Senator Cynthia Lummis also proposed a bill for the US Treasury to buy 1 million BTC on the open market.

Representative Ro Khanna also urged the Democratic Party to embrace bitcoin as part of America’s financial future. Independent presidential candidate Robert F. Kennedy Jr. proposed that the US Treasury acquire 4 million BTC, comparing this to the US’s 19% share of global gold reserves.

Senators Roy Haggerty and Marsha Blackburn also expressed strong support for bitcoin, with Haggerty equating it to freedom and Blackburn promoting his pro-BTC position with their campaign trucks at the conference.

The change in cryptography

Hougan noted that these announcements show a shift in Washington’s stance on cryptocurrency. Less than two years ago, the collapse of FTX and the fall of bitcoin to $17,000 led many to declare the end of crypto.

Today, politicians from both parties not only recognize BTC, but are also considering major government investments in the digital asset.

Hougan predicts that we could soon see a G20 country adding bitcoin to its balance sheet to overtake the US, comprehensive crypto legislation being passed more quickly due to growing bipartisan support, or Wall Street adopting crypto on a massive scale bigger than expected.

Hougan stressed that this change is not just political opportunism. While it’s clear that politicians are reacting to the growing popularity of crypto among Americans, the implications for investors are significant.

He added that the possibility of the US government adopting BTC as a reserve asset represents a significant departure from the previously hostile regulatory environment.

He concluded by urging investors to rethink their strategies, highlighting the need to assess bitcoin’s short-term upside potential. “The sense of what’s possible in Washington in crypto has changed,” he said.

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