Donald Trump’s victory in the election and the large number of crypto-friendly members of Congress who will be on Capitol Hill. “removes the last vestige of reputational risk from crypto,” According to Bitwise Chief investment officer Matt Hougan
Bitcoin’s rise in price reflects this, if only on a short-term basis. It reached a new high of almost $85,000 at the start of Monday.
“It has still been the case, even post ETF, that in the mind of professional investors, there’s been this lingering cloud of risk,” Hougan told Blockworks in a recent interview. “You had a hostile regulatory environment, you had a [Securities and Exchange Commission] investigation every couple of weeks, you had people not certain where it was going.”
Hougan said that the expected regulatory clarity would drive bitcoin buyers, while long-time Bitcoin holders will not want to sell their coins before they reach $100,000.
Many won’t necessarily need to wait to see if the Trump/GOP crypto promises are delivered on, Hougan argued — given the explicitness of the pledges and how involved the crypto industry was from a funding and lobbying perspective.
Hougan pointed out that Bitcoin is more difficult to short, given the US’s ability to establish a bitcoin strategic reserve. A similar move by the US could also be preempted by other countries. The executive predicted that BTC would reach $100,000 before the end of this year, then rise to higher levels in 2025.
“As good as it is for bitcoin, I think it’s probably better for other crypto assets, because they’ve really been stifled by this lack of regulatory clarity,” Hougan is added. “I have a high degree of confidence that will lift, and I do think that will lead to a golden age of crypto applications.”
Continue reading the interview to find out more.
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