Bitwise CIO Matt Hougan believes that the market is “not optimistic enough” about Bitcoin, and that investors should reconsider the potential benefits of the flagship crypto after what happened at the Bitcoin2024 conference.
Hougan’s reflections at the 2024 Bitcoin Conference in Nashville suggest a dramatic shift in what’s possible for Bitcoin, compared to even two years ago. He attributed the shift in sentiment to the significant political endorsements Bitcoin received during the event.
Hougan said:
“What is happening in the Bitcoin market right now is making me reconsider what is possible.”
Changing tides
The conference, which took place in Nashville, showed unprecedented political support for Bitcoin. GOP presidential candidate Donald Trump announced plans for a strategic national bitcoin stockpile, aiming to make America the “crypto capital of the world.”
Meanwhile, Senator Cynthia Lummis (R-WY) has introduced a bill calling for the US Treasury Department to acquire 1 million Bitcoin on the open market, while Representative Ro Khanna (D-CA) called on Democrats to embrace Bitcoin as a important part of the economy. America’s financial future.
Senator Roy Haggerty (R-TN) and Senator Marsha Blackburn (R-TN) also expressed their support, with the former stating that Bitcoin was in his “DNA.”
Independent presidential candidate Robert F. Kennedy Jr. promised to make Bitcoin a strategic reserve if elected. RFK added that he would issue an executive order on day one directing the Treasury to acquire 4 million Bitcoin to match the US’s 19% share of global gold reserves.
Even presumptive Democratic presidential nominee Kamala Harris, though absent, reportedly felt the political pressure, leading her team to hint at a “reset” at crypto companies after strong criticism from industry leaders.
Highlighting the dramatic turnaround in the crypto landscape, Hougan said:
“Less than two years ago, FTX collapsed in a historic fraud, Bitcoin traded at $17,000 and skeptics danced on crypto’s grave. Now politicians are openly talking about building a ‘Bitcoin Fort Knox.’”
Hougan suggested that political expressions of support may be driven by the growing popularity of crypto among Americans. He explained that crypto has gained significant political influence in the US due to its widespread adoption, with more than 80 million Americans owning crypto.
He noted that the industry’s powerful lobbying presence in Washington has prompted many politicians to publicly support Bitcoin, even if their support is more about appealing to its growing popularity than genuine belief in its value.
According to Hougan:
“Most politicians don’t really like Bitcoin; they merely bow to its rising popularity.”
However, he also noted:
“But I’m not sure that matters. When you say “opportunism,” I say, “That’s how politics works.” Politicians embrace crypto because Americans embrace crypto.”
Daydreaming now plausible
According to Hougan, this shift in perspective and Bitcoin’s rising popularity have made him “rethink what is possible.”
He highlighted several scenarios that now seem more plausible, including a G20 country adding Bitcoin to its balance sheet to jump ahead of the US, comprehensive crypto legislation being quickly passed thanks to bipartisan support, and Wall Street embracing crypto en masse.
Hougan noted that these ideas, once considered far-fetched, are becoming increasingly likely. He said:
“These ideas would have been the stuff of daydreams a year ago. But after what I saw last week, they seem more likely than not.
He concluded that all these developments mean it is time to reevaluate Bitcoin’s upside potential. Hougan believes the market is underestimating the changing sentiment.