Oh, the drama! It seems the crypto stage is set for a most peculiar performance, dear readers. Despite a rather colorful ensemble of altcoins, the good Mr. Trump’s crypto reserve will likely be a veritable Bitcoin bonanza, according to the esteemed Matt Hougan of Bitwise.
“The market, in its infinite wisdom, has turned up its nose at the announcement,” Hougan mused on March 5. “Too much of a good thing, perhaps? The inclusion of small-cap assets has caused quite the stir.”
On March 2, Trump hinted at a crypto menagerie featuring Solana, XRP, and Cardano, before declaring Bitcoin and Ether the heart of the matter. Hougan predicts:
“Once the dust settles, I daresay the reserve will be Bitcoin through and through, and rather more substantial than one might expect.”
Bitcoin’s price took a rollercoaster ride on the news, dipping below $83,000 before recovering to a more palatable sum above $90,000. Trump’s delay in auto parts tariffs seems to have given it a boost. Quelle surprise!
Some crypto sages are positively beside themselves with Trump’s move away from a Bitcoin-only reserve. Brian Armstrong of Coinbase deems Bitcoin a “successor to gold,” while Hougan suggests the inclusion of Cardano is more “calculating” than “strategic.”
“Despite the rather bumpy start,” Hougan opines, “I believe the market is rather missing the point.” He concludes:
“In the grand scheme of things, this is rather bullish.”
Hougan hints that Trump’s initial proposals, much like his tariffs, are often just the opening act. The upcoming crypto summit at the White House may yet see a change in the reserve’s composition.
Commerce Secretary Howard Lutnick suggests Bitcoin may receive special treatment, with other crypto tokens being “positively, but differently” regarded. How very diplomatic!
Hougan muses over the unlikely scenario where pushback could lead to the reserve being scrapped or limited to government-seized assets. And if the US jumps on the crypto bandwagon, who’s to say other countries won’t follow suit?
It’s rather doubtful the US will part with any crypto it acquires, even if Trump is succeeded by a Democrat. Hougan expects any crypto to be held “for a very long time,” much like the nation’s gold reserves.
“Democratic leaders won’t wish to offend the crypto-loving masses for minimal political gain,” Hougan quips.
“There are many who adore crypto, and a mere handful who abhor it,” he adds. “The last election taught us that the GOP’s crypto flirtation won it votes, while the Democrats’ disdain gained them little.”
Hougan believes the market’s initial optimism “is quite the right attitude. I suspect the market will come to its senses eventually.”
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2025-03-06 05:44