Bitwise CIO Matt Hougan believes the market is “not bullish enough” about Bitcoin, and investors need to rethink the flagship crypto’s potential upside after what happened at the Bitcoin2024 conference.
Hougan’s reflections on 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 at the event.
Hougan said:
“What’s happening in the Bitcoin market right now makes me rethink what’s possible.”
Shifting tides
The conference, which took place in Nashville, showcased unprecedented political endorsements for Bitcoin. GOP presidential nominee Donald Trump announced plans for a strategic national bitcoin stockpile, aiming to make America the “crypto capital of the world.”
Meanwhile, Sen. Cynthia Lummis (R-WY) introduced a bill advocating for the US Treasury to acquire 1 million Bitcoin in the open market, while Rep. Ro Khanna (D-CA) called on Democrats to embrace Bitcoin as a key part of America’s financial future.
Sen. Roy Haggerty (R-TN) and Sen. 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. vowed to make Bitcoin a strategic reserve asset 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’ 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” with crypto companies following strong criticisms from industry leaders.
Hougan highlighted the dramatic turnaround in the crypto landscape, saying:
“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.’”
Hougan suggested that political endorsements may be driven by the growing popularity of crypto among Americans. He explained that crypto has gained substantial political influence in the US due to its widespread adoption, with over 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 backing is more about appealing to its growing popularity than genuine belief in its value.
According to Hougan:
“Most politicians don’t truly love Bitcoin; they are just genuflecting 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 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 seem more plausible now, 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.
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 witnessed last week, they look more likely than not.”
He concluded that all of these developments mean it’s time to reevaluate Bitcoin’s upside potential. Hougan believes the market is underestimating the shifting sentiment.