The chief investment officer of crypto asset management firm Bitwise says a sea-change in crypto has taken place, increasing the likelihood of upside moves.
In a new blog post, Bitwise CIO Matt Hougan says the digital industry is “not bullish enough” as blue-chip and government interest in digital assets ramps up.
According to Hougan, the thought of Congress passing clear crypto guidelines and Wall Street players embracing crypto on a larger scale are no longer fantasy scenarios.
“As crypto investors, we spend a lot of time focused on downside risk. We’re all acutely aware that, at any moment, an event might occur that will drive prices sharply lower. It’s fairly common for people to say that bitcoin ‘could go to zero.’ I think we have to accept that there is now an equal risk to the upside.
Could we wake up tomorrow and find out that a G20 country has added bitcoin to its balance sheet, looking to front-run the U.S.? Could comprehensive crypto legislation get passed more quickly than expected in the U.S. as bipartisan support strengthens? Could Wall Street massively embrace crypto, at a scale much larger than most expect? (Just today, Goldman Sachs CEO David Solomon told CNBC that Bitcoin could be a store of value).
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.”
Earlier this week, Republican Senator Cynthia Lummis of Wyoming proposed the US government accumulate 5% of BTC’s overall supply to use as a reserve asset as a means of strengthening the US dollar.
Hougan says that the US government’s policy shift toward Bitcoin (BTC) is an indication that Washington’s view on digital assets has changed.
“Regardless, the fact remains: The sense of what’s possible in Washington on crypto has shifted. A year ago, the SEC sued Coinbase for operating an illegal securities exchange.
Now the U.S. Department of Justice is partnering with Coinbase to secure its crypto – and we’re talking about the U.S. holding Bitcoin as a reserve asset.”
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