Bitwise CIO Matt Hougan believes the market is misunderstanding the impact of former President Donald Trump’s proposed strategic cryptocurrency sanctuary, claiming that the initiative is ultimately bullish for digital assets despite its early volatility.
Hougan predicted that the final preparation will consist primarily of Bitcoin (BTC), which is much larger than the industry expects.
He also argued that other countries could accelerate their own Bitcoin acquisition accordingly, and that once they are acquired, the US is unlikely to sell its holdings for a very long time.
Industry concerns
Trump’s announcement on March 2 outlined a reserve consisting of digital assets beyond Bitcoin, initially surged BTC from $85,000 to $95,000. But by March 3rd, prices had been pulled back as skepticism about the inclusion of altcoins grew amid growing amid growing geopolitical tensions.
According to Hougan, the sale was driven by concerns that the structure of the reserve was more political than strategy and caused negative feelings to penetrate the market.
Some industry leaders, including Coinbase CEO Brian Armstrong and Nic Carter, co-founder of Castle Island Ventures, have criticized the inclusion of speculative assets like Cardano (ADA). Bitwise CEO Hunter Horsley also advocates Bitcoin-only reserves, in line with the broader market sentiment that such a move provides greater stability.
However, Hougan claimed that the market was overreacting. He said the initial proposal would shift the conversation and that a Bitcoin-only reserve would yield more viable results.
According to Hougan:
“The boldness of the initial proposal expanded the Overton window.”
He also argued that the announcement was the first version of the proposal and would likely evolve as the industry provides more feedback to the Trump administration.
Hougan further said that the core idea of ​​government-supported reserves, whether or not the final version of the proposal has been changed, will remain positive for the industry in the long term.
Global Ripple Effect
Hougan also stresses that the move could have broader geopolitical implications beyond the US, arguing that other countries now feel pressured to establish their own Bitcoin reserves, accelerating global adoption.
Hougan pointed out:
“El Salvador, Bhutan and Abu Dhabi are already doing strategic Bitcoin acquisitions. If you’re Honduras, Mexico or Guatemala and you see both Salvador and the US in action, can you afford to be left behind? If you’re Dubai, Qatar or Saudi Arabia, will Abu Dhabi leads pressure you to act?”
White House crypto advisor David Sachs is scheduled to hold the Crypto Summit on March 7th. There, it is hoped that industry leaders will promote the revised reserve structure. Sack recently revealed that Trump will reveal details of the reserve during the summit.
Long-term policy impact
Hogan also addressed concerns that future administrations could reverse policies, arguing that political reality would be more likely to cause such a move.
He said Crypto enjoys strong support within the demographics of certain voters, and it is a difficult issue for Democrats to oppose it completely.
According to Hougan:
“The GOP’s Crypto embrace won the votes in the last election, but it received little democratic hostility. The codes purchased could, like US gold reserves, could be held for a long time.”
Although early market reactions were mixed, Hougan argued that the creation of a US strategic crypto preparation marks a turning point.
Whether the final preparation holds multiple assets or is Bitcoin alone, the broader point is that the US government considers crypto as a strategic asset.
It is mentioned in this article
