Key Points
- The Trump administration’s potential crypto reserve may heavily favor Bitcoin, according to Bitwise CIO Matt Hougan.
- Despite market skepticism, Hougan believes institutional adoption and government-backed reserves will strengthen Bitcoin’s long-term position.
The crypto community is abuzz with speculation about President Donald Trump’s potential crypto reserve.
Bitcoin’s Possible Dominance
Despite initial reports suggesting the inclusion of multiple high-market-cap altcoins, Bitwise CIO Matt Hougan is confident that Bitcoin will ultimately dominate the reserve.
Hougan argued that the reserve’s initial proposal, which included more than just Bitcoin, complicated matters and led to a sour response from market participants. However, he believes that once the dust settles, the reserve will be almost entirely Bitcoin and larger than most expect.
Industry Leaders Weigh In
Notably, many high-profile figures in the crypto space have questioned the reserve’s composition, particularly the inclusion of non-Bitcoin assets. For example, Coinbase CEO Brian Armstrong expressed his concerns on X (formerly Twitter).
Despite these concerns, Hougan remains optimistic. He believes that market sentiment will eventually shift in favor of the reserve and that the initial skepticism is overlooking the bigger picture.
Hougan draws parallels to past policy decisions, noting that Trump’s proposals often evolve over time. He suggests a similar pattern could unfold with the crypto reserve, reinforcing the bullish case for Bitcoin and the broader crypto market.
Hougan also addressed concerns about the reserve’s stability under changing administrations. He worries that future leadership might reverse course and liquidate holdings, causing market volatility. However, he argues that institutional adoption and government-backed reserves could ultimately strengthen Bitcoin’s position.
In the meantime, Hougan’s prediction has boosted market optimism. At the time of writing, Bitcoin’s price had risen by 4.78% in the last 24 hours. Furthermore, the overall crypto market cap climbed 4.63% to reach $3.01 trillion. However, Polymarket data shows that only 24% believe Trump will establish a Bitcoin reserve within his first 100 days.
