Bitwise CIO Talks About The Impact Of The US Elections On Cryptocurrencies: “Regardless of the Results, Cryptocurrencies…”
Bitwise Chief Investment Officer Matt Hougan remains optimistic about the long-term growth of cryptocurrencies, arguing that crypto adoption will continue its upward trajectory regardless of the outcome of the US presidential election.
Speaking about the impact of candidates Donald Trump and Kamala Harris, Hougan said, “In the short term, a Trump win is better than a Harris win. In the long term, Bitcoin, Ethereum and stablecoins will thrive regardless of who wins.”
Hougan’s remarks contrast with more bearish sentiments expressed by some in the industry who fear a Kamala Harris presidency could spell trouble for digital assets. Critics point to the enforcement record of Biden’s appointee, Securities and Exchange Commission (SEC) Chairman Gary Gensler, as evidence of Democrats’ hostility toward crypto.
Nic Carter, co-founder of Castle Island Ventures, voiced his concerns on social media, saying, “If he wins, US crypto is finished.” The crypto industry has provided unprecedented financial support to both candidates in the lead-up to the Nov. 5 election, but many crypto advocates are hoping for a Trump victory.
Hougan highlighted historical data since the 2020 elections, noting that the price of Bitcoin has increased by 408% in the past four years. During this time, crypto trading volumes on decentralized exchanges and the Chicago Mercantile Exchange have increased by over 1,000%, while the supply of stablecoins has increased by approximately 4,400%.
“The question you have to ask yourself when you look at the statistics above is whether they will continue,” Hougan said. “From where I sit, the answer is very clearly yes.”
In October, Hougan reiterated his 2023 prediction that Bitcoin would trade above $80,000 in 2024. He added that this outlook is contingent on three conditions: Democrats do not capture the House, Senate and presidency; the Fed must make two more rate cuts by the end of the year; and the industry must avoid significant black swan events.
Hougan warned that a full Democratic surge could embolden factions within the party that are particularly critical of the crypto sector. However, he maintained a positive outlook, saying, “Even in that scenario, I would buy the dip.”
While Hougan refrained from making a clear election prediction, Bitwise has been prepared with regulatory filings, filing ETF applications for both Solana and XRP with the SEC.
*This is not investment advice.
