Bitwise’s Perspective on Political Influence in Crypto

According to Matt Hougan from Bitwise, the recent discussions among U.S. politicians regarding Bitcoin’s potential as a reserve asset represent a significant shift, especially considering that such notions seemed far-fetched just a year ago.

Reflections from the Bitcoin Conference

Following a notable Bitcoin conference in Nashville, Hougan expressed his thoughts on the evolving perception of Bitcoin among influential politicians, stating, “We’re not bullish enough.” This sentiment was fueled by several public commitments made by politicians regarding Bitcoin.

Recent Political Commitments

In a post dated July 31, Hougan noted that notable proposals by various U.S. political figures have led him to reconsider the future potential of Bitcoin (BTC). These proposals included:

• Donald Trump’s initiative to create a strategic national Bitcoin stockpile.
• Senator Cynthia Lummis from Wyoming introducing a Bitcoin reserve bill aimed at addressing the country’s $35 trillion debt crisis.
• Independent candidate Robert F. Kennedy Jr. promising to instruct the U.S. Treasury to purchase 500 Bitcoin daily until a total of 4 million Bitcoin is acquired.

A Shift in Perception

Hougan remarked on how these proposals, once thought to be unrealistic, now appear increasingly plausible:

“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.’”

Government Engagement with Crypto

He also pointed out the recent partnership between the U.S. Department of Justice and Coinbase, marking a significant change from the previous year when the U.S. Securities and Exchange Commission filed a lawsuit against the exchange.

While acknowledging that not all politicians may genuinely support Bitcoin, Hougan emphasized that their recognition of its popularity among the public is critical:

“Politicians are embracing crypto because Americans are embracing crypto.”

Future Price Projections

Although Hougan did not provide specific price forecasts, Michael Saylor, the architect of MicroStrategy’s Bitcoin investment strategy, predicted that Bitcoin could reach $13 million by 2045. He also presented a more optimistic “bull case” scenario with an estimated target of $49 million, echoing a recent forecast by VanEck, suggesting Bitcoin might reach $52 million by 2050.

Despite this bullish outlook, it is important to note that Bitcoin has experienced a decline of over 8% since reaching nearly $70,000 on July 29, and remains approximately 13.4% below its all-time high of $73,737 recorded on March 14, according to CoinGecko data.