As the 2024 U.S. presidential election begins, Bitwise Asset Management’s Chief Investment Officer Matt Hougan reassures the crypto market with a bullish outlook. He asserted that crypto market’s growth trajectory remains unstoppable, regardless of political outcomes. In his note titled “Crypto Has Already Won,” Hougan emphasized that crypto will continue to thrive in the long term, despite potential regulatory headwinds.
Bitwise CIO’s Take on Crypto Market After Elections
Hougan highlighted that “Washington can’t stop crypto.” This suggests that government actions may influence crypto’s growth rate or clarity but ultimately cannot hinder its progress. “It can alter the trajectory. It can speed things up or slow things down. It can bring more confusion or new clarity. But it can’t stop it,” he wrote in the note.
Reflecting on crypto’s progress since the last election, Hougan noted the strides made despite a challenging regulatory environment. He questioned, “Are things better or worse than the last time we went to the polls?” Moreover, he presented statistics that demonstrate growth in multiple areas.
For instance, he cited rising Bitcoin and Ethereum prices, increased open interest in CME Bitcoin Futures, and the significant growth in decentralized finance (DeFi) total value locked (TVL) and stablecoin adoption. Hougan noted that the data underscores how much crypto has evolved since 2020, despite regulatory obstacles like “Operation Choke Point 2.0” and numerous SEC lawsuits.
The Bitwise CIO acknowledged that election outcomes could have some impact in the short term, especially depending on the administration. He outlined his “cheat sheet,” stating that “short-term, a Trump victory is better than a Harris victory,” and warned of increased regulatory risks for altcoins under a Democratic administration.
He added, “The only ‘bad’ outcome for crypto is a Democratic sweep,” which he believes might empower crypto-skeptical voices within the party. However, he maintained confidence even in this scenario, saying, “I’d buy the dip.”
Crypto ETF Prediction
Looking forward, Hougan remains optimistic. He anticipates ongoing growth in areas such as stablecoins, institutional adoption, tokenization, and mainstream applications. “Spot crypto ETF inflows will continue. Stablecoins will continue to grow rapidly. Institutions will continue to ‘get off zero’ and add allocations to crypto,” the Bitwise CIO predicted.
Hougan’s overarching message for crypto investors: political turbulence may impact the pace, but the fundamental direction remains strong. The market response to election outcomes may be immediate, but Hougan argued this will ultimately be just “a speed bump” or “a wind gust” along crypto’s path.
Also Read: Crypto in the Voting Booth? Analyst Predicts Bitcoin’s Role in Elections
Source: https://www.cryptonewsz.com/bitwise-cio-good-news-on-crypto-after-election/