- Bitwise's CIO is bullish on crypto regardless of who wins the US election.
- Many in the crypto industry say a Harris victory would be devastating for digital assets.
Bitwise Chief Investment Officer Matt Hougan says crypto adoption will continue its upward trajectory regardless of who wins the US election.
“Short-term, a Trump victory is better than a Harris victory,” he said of candidates Donald Trump and Kamala Harris. “Long-term, Bitcoin, Ethereum, and stablecoins will thrive regardless of who wins.”
Hougan’s view comes in sharp contrast to many in the crypto industry who have said a Harris victory would be devastating for digital assets.
They cite the years-long crypto crackdown by Securities and Exchange Commission Chair Gary Gensler — a Joe Biden appointee — as evidence of the Democrat’s hostile attitude towards crypto.
“US crypto is done if she wins,” Nic Carter, a founding partner at Castle Island Ventures, said on X.
Crypto industry heavyweights have thrown record amounts of cash at both candidates in the runup to November 5. But many crypto founders are hoping for a Trump victory.
Bitcoin to $80,000
Hougan pointed to historical data since the 2020 election in making his case.
Over the past four years, Bitcoin’s price has jumped 408%.
Crypto trading volumes on both decentralised exchanges and on the Chicago Mercantile Exchange are up over 1,000%, while the number of stablecoins in circulation has soared some 4,400%
“The question to ask yourself as you look at the above statistics is whether they will continue,” Hougan said. “From my seat, the answer is a resounding yes.”
In October, the Bitwise CIO reiterated his 2023 prediction that Bitcoin will trade above $80,000 in 2024.
“I still think that’s true,” Hougan said, adding that the prediction was dependent on three conditions.
First, the Democrats must not sweep the House, Senate, and Presidency. Second, the Federal Reserve must cut interest rates twice more by the end of the year. And third, black swan events must not impact the industry.
A Democratic sweep, Hougan said, would embolden the fringe element of the Democratic Party that is hostile to crypto.
”Even in that scenario, I’d buy the dip,” he said.
Hougan stopped short of saying who he thinks will win the election. But the firm has filed exchange-traded fund applications for both Solana and XRP with the SEC.
Such filings may be equivalent to bets on a Trump victory because they would almost certainly be dismissed under a future Harris administration, according to Bloomberg Intelligence analyst Eric Balchunas.
Tim Craig is DL News’ Edinburgh-based DeFi Correspondent. Reach out with tips at tim@dlnews.com.
