Bitwise CIO Matt Hougan asserts that the market is “not bullish enough” about Bitcoin. He urges investors to reconsider the flagship crypto’s potential upside following the insights gained at the Bitcoin2024 conference.
Reflections on the 2024 Bitcoin Conference
Hougan’s observations from the 2024 Bitcoin Conference in Nashville indicate a significant transformation in Bitcoin’s prospects compared to two years ago. He attributes this shift in sentiment to the substantial political endorsements Bitcoin received during the event.
Hougan remarked, “What’s happening in the Bitcoin market right now makes me rethink what’s possible.”
Shifting Tides
The Nashville conference highlighted unprecedented political endorsements for Bitcoin. GOP presidential nominee Donald Trump announced plans to establish a strategic national Bitcoin stockpile, aiming to position America as the “crypto capital of the world.”
Meanwhile, Sen. Cynthia Lummis (R-WY) proposed a bill advocating for the US Treasury to acquire 1 million Bitcoin in the open market. Rep. Ro Khanna (D-CA) urged Democrats to embrace Bitcoin as a key component of America’s financial future.
Sen. Roy Haggerty (R-TN) and Sen. Marsha Blackburn (R-TN) also expressed their support, with Haggerty stating that Bitcoin was in his “DNA.”
Independent presidential candidate Robert F. Kennedy Jr. vowed to make Bitcoin a strategic reserve asset if elected. He promised to issue an executive order on his first day in office, directing the Treasury to acquire 4 million Bitcoin to match the US’ 19% share of global gold reserves.
Even presumptive Democratic presidential nominee Kamala Harris, though absent, reportedly felt the political pressure. Her team hinted at a “reset” with crypto companies following strong criticisms from industry leaders.
A Dramatic Turnaround
Hougan emphasized the dramatic turnaround in the crypto landscape: “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 suggested that political endorsements might be driven by the growing popularity of crypto among Americans. Crypto has gained substantial political influence in the US due to its widespread adoption, with over 80 million Americans owning crypto.
Hougan noted that the industry’s powerful lobbying presence in Washington has prompted many politicians to publicly support Bitcoin. This support, he believes, is more about appealing to its growing popularity than a genuine belief in its value.
“Most politicians don’t truly love Bitcoin; they are just genuflecting to its rising popularity,” Hougan stated. He added, “But I’m not sure that matters. When you say ‘opportunism,’ I say, ‘That’s how politics works.’ Politicians are embracing crypto because Americans are embracing crypto.”
Daydreams Now Plausible
According to Hougan, this shift in perspective and the rising popularity of Bitcoin have made him “rethink what’s possible.” He highlighted several scenarios that now seem more plausible, including a G20 country adding Bitcoin to its balance sheet to preempt the US, comprehensive crypto legislation passing swiftly due to bipartisan support, and Wall Street massively embracing crypto.
“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 remarked.
He concluded that all these developments suggest it’s time to reevaluate Bitcoin’s upside potential. Hougan believes the market is underestimating the shifting sentiment.
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