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Bitwise: Trump sets stage for Bitcoin buying
Matt Hougan, Chief Investment Officer of Bitwise, stated that the creation of a strategic Bitcoin reserve (SBR) by US President Donald Trump has eliminated the "last existential risk" for the first cryptocurrency. Previously, the main threat to Bitcoin came from governments. However, the White House has become the best friend of the flagship crypto.
Weighing the risks and potential rewards, Hougan believes that "the best time in history" to buy Bitcoin has arrived. In the past, cryptocurrencies were plagued by issues with technology, questionable infrastructure, and permanent regulatory uncertainty. However, the market has changed over the past few years. Demand for crypto assets has been boosted by reliable crypto platforms, solid Bitcoin ETFs, and institutional cryptocurrency custodians.
The main fear for Bitcoin investors until recently was the potential ban of cryptocurrencies by governments. However, thanks to Trump's decree on the creation of a crypto reserve, this risk officially belongs to the past. The US strategic reserve will consist of 103,500 BTC, some of which were seized by the government in confiscations. The government has also promised to replenish the reserve without burdening taxpayers with additional costs, such as by revaluing traditional gold.
Hougan jokingly called Bitcoin the ideal "backup plan". If the dollar ever starts feeling uncertain, it is better to choose cryptocurrency.
Bitwise’s client interest in digital assets is also growing rapidly: the share of cryptocurrencies in their portfolios has increased from 1% to 3% in two years. Hougan forecasts it will soon rise to 5% and even higher.
In other words, Bitcoin owes its official recognition to Donald Trump. The only question is how long the US administration will maintain its crypto-friendly stance.
© InstaFintech Group
