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Bitwise Director Matt Hougan Explains Possible Effects of Donald Trump`s Crypto Reserve Plan! Here Are the Details

Bitwise Chief Investment Officer Matt Hougan believes the crypto market misread US President Donald Trump’s announcement of the US Crypto Strategic Reserve, arguing that the proposal is ultimately bullish on digital assets despite its flaws. Bitwise CIO: Market Misunderstood Trump`s Crypto Reserve Plan, Calls for Bullishness After Trump announced his directive to create a crypto reserve, the crypto market initially surged, sending Bitcoin (BTC) up 6.81%, Ethereum (ETH) up 10%, and other major assets like XRP, Solana (SOL), and Cardano (ADA) up 15%, 25%, and 70% respectively from last week’s lows. However, these gains were quickly erased as Bitcoin fell over 10% and ETH fell over 15% following Trump’s tariff announcement on Canada, Mexico and China. The sharp reversal was reminiscent of the infamous Bitcoin rally and crash under President Xi in 2019. But it happened even faster. Hougan: Only Bitcoin Reserve Could Be More Bullish Hougan suggested in a note to clients that the market overreacted because the proposed reserve included multiple assets rather than just Bitcoin. “If it was just Bitcoin reserves, prices would probably be higher,” he said. He also questioned the inclusion of more speculative assets like Cardano, calling it “more calculating than strategic.” Bitwise CEO Hunter Horsley echoed these concerns, aligning himself with industry leaders like Coinbase’s Brian Armstrong and the Winklevoss twins who advocate for a Bitcoin-only reserve. “I imagined a strategic reserve would just be Bitcoin. That makes the most sense to me,” Horsley says. “There’s value in many crypto assets, but this is not an investment portfolio, it’s a reserve, and Bitcoin is the undisputed store of value for the digital age.” Key Questions: Financing, Execution, and Political Viability While the announcement has generated excitement, significant uncertainties remain. The biggest questions revolve around how the reserve will be funded and whether it can be implemented without new legislation from Congress. “The Federal Reserve and the Treasury Department would probably need new legislative authority to move forward,” Hougan said, adding that there are doubts about how realistic the plan is in the near term. *This is not investment advice. Continue Reading: Bitwise Director Matt Hougan Explains Possible Effects of Donald Trump`s Crypto Reserve Plan! Here Are the Details CoinOtag

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If you invested $1,000 in Bitcoin when Trump took office, you’d now have this much

Thus far, Donald Trump’s presidency has been a mixed bag for the cryptocurrency market . Investors initially took Trump’s pro-crypto stances as a bullish signal. However, there has been a lack of clarity on proposed regulatory changes. The controversial launches of the President and the First Lady’s memecoins shook investor confidence . On March 2, Bitcoin ( BTC ) surged to $94,000 following the commander-in-chief’s announcement that a strategic cryptocurrency reserve would be created. Despite an initial wave of optimism, Donald Trump’s announcement of new tariffs on China, Canada, and Mexico on March 4 sent a shockwave through financial markets. This culminated in a risk asset sell-off that saw $80 billion wiped out from the crypto market within a day. Although there are plenty of silver linings to be found, and these pullbacks might very well turn out to be temporary, investing in Bitcoin when Trump took office would not have secured a profit as of March 5. Let’s take a closer look at the exact figures of this hypothetical trade. Bitcoin has seen a double-digit decrease in price since Donald Trump’s inauguration Donald Trump’s second term as President started on January 20. At the time, Bitcoin was trading at a price of $101,280. Since the time of Trump’s inauguration, Bitcoin has failed to break through to the upside in a meaningful manner, and recent developments have caused a sharp correction in the price of the leading digital asset. By press time on March 5, Bitcoin was changing hands at a price of $89,590. BTC price year-to-date (YTD) chart. Source: Finbold That figure equates to an 11.54% drop from January 20. Accordingly, a $1,000 investment made on the day that Donald Trump took office again would now be worth $884.60, with a net loss of $115.40. In contrast, at the time of the election, Bitcoin was trading at $68,290. Investors who made a $1,000 investment on that fateful November 5 day would have benefitted from a 31.19% surge, and their position would now be worth $1,311, for a $311 gain. Lastly, readers should note that per Secretary of Commerce Howard Lutnick, Donald Trump will reveal a strategy for his long-awaited Bitcoin Reserve at the inaugural White House Crypto Summit on Friday, March 7. While not many specifics are known at this time, the summit has the potential to set the tone not just for Bitcoin, but the wider cryptocurrency market going forward — and that tone could very well be bullish. Featured AI image from Shutterstock The post If you invested $1,000 in Bitcoin when Trump took office, you’d now have this much appeared first on Finbold . CoinOtag