Matt Hougan, the chief investment officer of Bitwise, has said the recent commitments made by US politicians have made him reconsider his perspective on Bitcoin’s potential.
In a blog post on July 31, Hougan wrote that “we’re not bullish enough” following the recent promises by influential US politicians at the Bitcoin conference in Nashville.
Politicians Pledge to Create Bitcoin Reserve
Notable among these pledges was Republican candidate Donald Trump’s proposal to establish a strategic national Bitcoin reserve.
Wyoming Senator Cynthia Lummim also revealed a Bitcoin reserve bill aimed at addressing the country’s staggering $35 trillion debt crisis.
Furthermore, independent candidate Robert F. Kennedy Jr. made a commitment to mandate the US Treasury to acquire 500 Bitcoin daily until a minimum of 4 million Bitcoin is amassed.
“These ideas would have seemed like mere fantasies just a year ago. However, following recent developments, they appear increasingly plausible,” Hougan said.
He highlighted the transformation from a time when FTX faced a historic fraud collapse, Bitcoin was valued at $17,000, and skeptics were writing off the crypto realm to the current scenario where politicians openly discuss plans akin to establishing a “Bitcoin Fort Knox.”
Hougan emphasized the evolving landscape.
He pointed to the US Department of Justice’s recent collaboration with Coinbase, a move that followed a lawsuit by the US securities regulator against the platform for allegedly operating as an unregistered securities exchange.
While acknowledging that some politicians may not genuinely endorse Bitcoin but are rather capitalizing on its surging popularity, Hougan suggested that the positioning of politicians on this spectrum might be inconsequential.
“Politicians are embracing crypto because Americans are embracing crypto.”
The CEO of the world’s largest asset manager is a “major believer.”
The CEO of Goldman Sachs says it “could have a use case as a store of value.”
More than half of the world’s largest hedge funds own it.
And I meet people all the time who are “certain” it’s going to zero. https://t.co/j3JrBjjNQI
— Matt Hougan (@Matt_Hougan) July 30, 2024
During the Bitcoin 2024 conference, Michael Saylor, the visionary behind MicroStrategy’s Bitcoin investment strategy, predicted Bitcoin soaring to $13 million by 2045.
His more optimistic projection, the “bull case,” set the price target even higher at $49 million.
The figure aligns closely with a recent forecast by crypto asset manager VanEck, which predicted Bitcoin could reach $52 million by 2050.
Despite the optimism, Bitcoin has witnessed an over 8% decline since nearly touching $70,000 on July 29 and remains 13.4% below its all-time high of $73,737 established on March 14, according to data from CoinGecko.
Digital Asset Products Continue Inflow Streak
The digital asset investment landscape continues to draw substantial interest, with inflows maintaining a positive trajectory for the fourth consecutive week.
Last week, the sector saw an influx of $245 million, with year-to-date (YTD) inflows reaching a record $20.5 billion.
Bitcoin products have continued to attract significant investments.
Last week alone, Bitcoin saw inflows amounting to $519 million, bringing its month-to-date inflows to $3.6 billion and YTD inflows to an unprecedented $19 billion.
The surge in investment is believed to be influenced by the political climate in the United States, particularly with comments from the election campaign suggesting Bitcoin could be considered a strategic reserve asset.
Additionally, the anticipation of a potential rate cut by the Federal Reserve in September 2024 has bolstered investor sentiment toward Bitcoin.
