Key Takeaways
- Bitwise CIO Matt Hougan argues the market is misreading Trump's bitcoin reserve plan.
- He expects the final reserve to be mostly bitcoin despite initial multi-asset inclusion.
- Hougan sees the U.S. announcement as a potential catalyst for global bitcoin accumulation.
Bitwise Chief Investment Officer Matt Hougan believes the market is “overthinking” President Trump’s announcement of a U.S. Crypto Strategic Reserve, calling it a bullish development despite its controversial rollout.
Following Trump’s Sunday announcement that the reserve would include bitcoin, ether, XRP, solana, and cardano, prices surged—bitcoin jumped 10%, ether 15%, and cardano 70% from last week’s lows.
However, a subsequent market pullback erased those gains after Trump announced new tariffs on Canada, Mexico, and China.
Disappointment over asset inclusion
In a note to clients, Hougan suggested that bitcoin’s decline was due to disappointment over the reserve including multiple digital assets rather than being bitcoin-only.
He said:
In particular, the inclusion of speculative assets like Cardano feels more calculating than strategic.
CEO’s perspective
Bitwise CEO Hunter Horsley echoed the sentiment, stating:
Many crypto assets have merits, but… bitcoin is the undisputed store of value for the digital age.
Future expectations
Despite uncertainties around funding and congressional approval, Hougan expects the final version of the reserve to be mostly bitcoin.
He also predicts a global race among nation-states to accumulate bitcoin following the U.S. announcement.
Strategic asset declaration
Hougan said:
This week’s announcement marks the first time the U.S. has ever said that bitcoin is a strategic asset. As long as that stays intact, it feels like a game-changer to me.
