Bitwise’s Chief Investment Officer, Matt Hougan, asserts that Bitcoin will dominate Donald Trump’s proposed national crypto reserve. Though first worried about the inclusion of various altcoins, Hougan thinks that Bitcoin will eventually make up most of the reserve and that its total volume might surprise everyone.
Hougan pointed out that the addition of other cryptocurrencies has resulted in a mixed response from the market on the news. He contends, nonetheless, that the fundamental concept still represents a major and optimistic growth for digital assets.
Initially, Trump announced that the reserve would feature major cryptocurrencies such as Solana, XRP, and Cardano, alongside Bitcoin and Ethereum. Hougan hypothesizes, nonetheless, that, following more talks and changes, the final framework will probably favor Bitcoin as the main asset.
After the announcement, Bitcoin’s price first increased but then dropped as doubt over the altcoin component surfaced. Some business leaders have questioned whether assets apart from Bitcoin fit in such a reserve; Coinbase CEO Brian Armstrong compared the value of Bitcoin to that of gold in national reserves.
Hougan argues that even with the mixed response of the market, establishing a government-backed crypto reserve marks a long-term favorable change. According to him, Trump’s ideas are still developing and might change depending on forthcoming business talks, especially at the forthcoming crypto conference of the White House. Commerce Secretary Howard Lutnick has hinted that Bitcoin will hold a special place within the reserve, despite the possibility of handling other cryptocurrencies differently.
Beyond the U.S., Hougan predicts that this move could prompt other nations to follow suit. Countries such as El Salvador and Bhutan have already made significant Bitcoin acquisitions, and more governments may now feel compelled to secure their own holdings to avoid being left behind.
Long-term, the reserve’s establishment could reinforce Bitcoin’s position as a strategic asset. Hougan argues that any crypto acquired by the U.S. government will likely be held for an extended period, similar to its gold reserves, regardless of future political changes. Given crypto’s increasing influence in voter demographics, he suggests that a shift away from these policies would be unlikely.
As discussions around the crypto reserve continue, its final structure remains uncertain. However, the overarching message is clear: the U.S. government is beginning to recognize the strategic importance of cryptocurrency, setting the stage for potentially significant changes in the global financial landscape.
