As a seasoned crypto investor with a decade of rollercoaster rides under my belt, I can confidently say that the recent endorsements from key US politicians have added a new dimension to my investment strategy. The political shift towards Bitcoin is as exhilarating as a bull run and just as nerve-wracking as a bear market.
Following multiple notable American political figures expressing their support for Bitcoin at a recent gathering in Nashville, Bitwise’s Chief Investment Officer, Matt Hougan, stated:
“We’re not bullish enough.”
In a post dated July 31, the cryptocurrency expert shared his reflections on pledges made by significant individuals, which led him to reconsider the possibilities of Bitcoin.
Among these commitments were Donald Trump’s plan to create a national Bitcoin reserve, Wyoming Senator Cynthia Lummis’ introduction of a bill proposing a Bitcoin reserve aimed at addressing a $35 trillion debt, and Robert F. Kennedy Jr.’s pledge to have the U.S. Treasury buy 500 Bitcoins per day until reaching a total of 4 million.
Hougan commented on the political shift, stating:
A little over two years back, FTX was on the brink of collapse due to historical fraudulent activities, with Bitcoin trading at around $17,000. Back then, crypto skeptics were reveling in its demise, but here we are today, as politicians openly discuss constructing a ‘Bitcoin Fort Knox’. As a crypto investor, it’s fascinating to see how the narrative has shifted so dramatically.
Bitcoin’s Political Sway
Hougan highlighted the US Department of Justice’s recent partnership with Coinbase, just a year after the US Securities and Exchange Commission (SEC) sued the firm for allegedly operating as an unregistered securities exchange, underscores the shifting regulatory landscape.
It’s been noted that while some politicians may not truly back Bitcoin, they’re leveraging its increasing fame instead: “Politicians are hopping on the crypto bandwagon since Americans are doing the same.” This political trend could play a significant role in Bitcoin’s possible growth trajectory.
As an analyst, I’m sharing insights from two prominent figures in the crypto sphere: Michael Saylor, CEO of MicroStrategy, and crypto asset manager VanEck. They both have optimistic outlooks for Bitcoin (BTC). By 2045, according to Saylor, we might see BTC soaring to an astounding $13 million. If the market continues to be particularly bullish, it could even climb as high as $49 million by that year. Similarly, VanEck anticipates a more conservative yet impressive growth trajectory, with Bitcoin potentially reaching $52 million by 2050.
Photo: CoinMarketCap
Although anticipating an upward trend, Bitcoin has experienced a drop of approximately 7.80% since approaching $69,800 on July 29. Currently, it is still 12.78% lower than its record high of $73,750 achieved on March 14.
Institutional Inflows Fuel Bitcoin Adoption
Moreover, Hougan highlighted substantial institutional investment in Bitcoin Exchange-Traded Funds (ETFs). Following the SEC’s approval of 11 spot Bitcoin ETFs in January 2024, these funds have accumulated a total of approximately $12.15 billion in assets. Anticipating an increase in institutional investments, Hougan predicts that this amount could exceed $5 billion by the end of the year.
Hougan’s position aligns with a growing recognition and approval of Bitcoin within institutions and politics, which might foster considerable expansion and widespread use, consequently reshaping the cryptocurrency sector considerably.
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2024-08-01 12:29