As we kick off the 2024 U.S. presidential election, Matt Hougan, the Chief Investment Officer at Bitwise Asset Management, is here to give the crypto market a boost of confidence with his optimistic perspective. He firmly believes that the growth of the crypto market is on an unstoppable path, no matter what happens politically. In his letter entitled “Crypto Has Already Won,” Hougan stressed that, despite the challenges brought about by regulations, crypto will continue to flourish in the long term.
Bitwise CIO’s Take on the Crypto Market After Elections
Hougan pointed out that “Washington can’t stop crypto.” This indicates that government intervention can affect crypto’s rate of growth or transparency but ultimately cannot slow it down. “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 posed an interesting question: “Are things better or worse than the last time we went to the polls?” He also presented some compelling statistics that show growth in many areas.
For instance, he referred to the increase in the prices of Bitcoin and Ethereum, the increase in open interest for CME Bitcoin Futures, and the stunning rise in the total value locked (TVL) in decentralized finance (DeFi), and the increased use of stablecoins. 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. Despite the circumstances, he stayed confident, remarking, “I’d buy the dip.”
Crypto ETF Prediction
Looking ahead, Hougan is feeling positive. He expects to see continued growth in areas like stablecoins, institutional adoption, tokenization, and mainstream applications. “Spot crypto ETF inflows are set to keep coming in.” 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.
