PANews reported on March 6 that according to The Block, Bitwise Chief Investment Officer Matt Hougan said that in the ups and downs of the Trump market caused by the US cryptocurrency reserve, "the market misunderstands this" and "thinks too much". After President Trump announced on Sunday that he had instructed a working group to "advance" the US cryptocurrency strategic reserve plan, the cryptocurrency market initially surged significantly, but after Trump announced new tariffs on imports from Canada and Mexico, it triggered a risk-averse sentiment - this erased the gains brought by the news of the cryptocurrency reserve. Hougan argued in a report to clients on Tuesday evening that "market participants are dissatisfied with this announcement because the proposed reserve will not only hold Bit; if the reserve only holds Bit, the price may be higher; especially including speculative assets like Canada, it feels more like a calculation than a strategy."
Hougan said: "Although the rollout process has flaws, I think the market has misunderstood the situation. Ultimately, this is a positive, and I think the market will eventually accept this view." He outlined three factors that he believes the market is still ignoring. Hougan believes that the first proposal will not be the final proposal, reflecting President Trump's negotiating style, whether it's geopolitical conflicts, tariffs or the US cryptocurrency reserve. Houga pointed out that the opposition triggered by the announcement may be strong enough to abolish the entire concept of the cryptocurrency reserve or limit it only to assets that have been confiscated. However, he believes this is unlikely, especially before the first White House Cryptocurrency Summit on Friday. The second factor emphasized by Hougan is the impact of the news on regions outside the US, as people speculate that the US reserve will trigger a global accumulation race as countries prepare for "Bit to become a globally important monetary asset". Finally, Hougan believes that once bought, these crypto assets may not be sold, forming a final hoarder. Although some observers believe that even if Trump as a Republican president successfully establishes a reserve, if the Democrats regain control four years later, they will sell these assets, but Hougan believes this is unlikely.
Ultimately, Hougan expects the Trump administration to achieve its policy goals, and some version of the reserve proposal will eventually be advanced. He concluded: "In my view, the market's initial reaction is correct: the US government's announcement of crypto assets as 'strategic assets' is positive. I think the market will eventually realize this."
