PANews March 6 news, according to The Block, Bitwise Chief Investment Officer Matt Hougan said that in the ups and downs of Trump's market caused by the US cryptocurrency reserves, "the market has misunderstood this" and "thinks too much". After President Trump announced on Sunday that he had instructed a working group to "advance" the US strategic cryptocurrency reserve plan, the cryptocurrency market initially rose sharply. However, after Trump announced new tariffs on Canadian and Mexican imports, it triggered risk aversion-which wiped out the gains brought by the cryptocurrency reserve news. Hougan argued in a report to clients late on Tuesday: "Market participants are unhappy with the announcement because the proposed reserves hold more than just Bitcoin; if the reserves only hold Bitcoin, the price may be higher; especially the inclusion of speculative assets like Canada feels more like calculation than strategy."
"Even though the rollout was flawed, I think the market misunderstood the situation. Ultimately, this is bullish and I think the market will accept that view sooner or later," Hougan said, outlining three factors he believes the market is still overlooking. Hougan believes that the first proposal will not be the final one, which reflects President Trump's negotiating style, whether it is geopolitical conflicts, tariffs or the US cryptocurrency reserve. Houga noted that the opposition to the announcement may be strong enough that the entire concept of a cryptocurrency reserve is abolished or limited to assets that have been held through confiscation. However, he believes this is unlikely, especially ahead of the first White House Crypto Summit on Friday. The second factor Hougan highlighted is the impact of the news outside the United States, with speculation that the US reserve will trigger a global accumulation race as countries prepare for "Bitcoin to become a global important monetary asset." Finally, Hougan believes that once purchased, these crypto assets may not be sold, creating an ultimate hoarder. While some observers believe that even if Trump successfully builds a reserve as a Republican president, they will sell these assets if the Democrats take back control four years later, 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 move forward. He concluded: "The market's initial reaction seems to me to be correct: the US government's declaration of crypto assets as 'strategic assets' is positive. I think the market will eventually realize this."
