Bitwise CIO: Trump's crypto reserve plan is over-interpreted, but it is still positive overall

Odaily reported that Bitwise Chief Investment Officer Matt Hougan said the market's reaction to former President Trump's crypto reserve plan was "overinterpreted." Although the plan has flaws, it is overall positive news. After Trump announced on Sunday that he had instructed a working group to advance the U.S. crypto strategic reserve plan, including BTC, ETH, XRP, SOL, and ADA, these assets rose 10%, 15%, 25%, 30%, and 70% respectively from last week's lows, but Bitcoin then fell more than 10% and Ethereum plummeted more than 15%. In a report to clients on Tuesday, Hougan pointed out that the market is skeptical of the plan mainly because the reserve includes cryptocurrencies other than Bitcoin, "especially the inclusion of speculative assets like Cardano, which feels more like a political consideration than a strategic choice." Hougan emphasized that the market has overlooked three key factors: first, Trump's negotiating style means the initial proposal will not be the final version; second, the U.S. move could trigger a global Bitcoin accumulation race; and finally, once acquired, these cryptocurrencies are likely to be held long-term and not sold. Hougan expects the Trump administration will ultimately advance some form of reserve plan, and "the U.S. government's declaration that cryptocurrencies are of strategic importance is positive in itself, and I think the market will ultimately recognize this."