Despite including some large-scale market cap altcoins, US President Donald Trump’s planned cryptocurrency will ultimately be “almost made up of Bitcoin,” said Bitwise Chief Investment Officer Matt Hougan.
“The market participants have made the announcement sour because the proposed reserve holds more than Bitcoin,” Hougan explained in a March 5 market note. “Announcement involves including small assets in unnecessary complex issues.”
On March 2, Trump initially said that the stash would include Solana (SOL), XRP (XRP) and Cardano (ADA), adding that Bitcoin (BTC) and Ether (ETH) would later become the “heart” of the reserve. Hogan said:
“I think once the dust settles, the final reserve will almost completely become Bitcoin, bigger than people think.”
The Bitcoin price initially jumped to the news that it would be included in a spare reserve, but later fell below $83,000 and was recovered over $90,000 on the last day to delay tariffs on car parts in Canada and Mexico.
Trump’s move from Bitcoin-only reserves is concerned with several crypto commentators who said Bitcoin is the only cryptocurrency suitable for inclusion in the reserve.
“We feel that including speculative assets like Cardano is more calculated than strategic,” Hogan said. He added that he thinks the market “misunderstands things” “despite the flawed developments.”
“In the end, this is bullish.”
Hougan said Trump’s initial proposal, as in the case of tariffs, was “rarely his final” and that views from industry tycoons at the upcoming White House Crypto Summit could see changes in makeup.
Commerce Secretary Howard Luttonick hinted that Bitcoin could gain special status in the reserve, saying, “I think other crypto tokens are treated differently – positive but different.”
Hougan said it is a small, more unlikely possibility that the pushback to the idea could be scrapped if it was disposed of or restricted to assets already seized by the government.
If the US is creating crypto-protected areas, he added, it is likely that other countries would consider wanting to slice Bitcoin.
Source: Bitwise
And even if Democrats take up Trump’s position after he’s gone, they’re unlikely to sell the codes that the US buys. Hogan said. Like the country’s gold reserves, the code “will be held for a very long time,” he added.
Related: Bitcoin volatility soars amid US crypto sanctuary, tariff jitter
“Democrat leaders don’t want voters to benefit little themselves,” he said.
“There are people who love cryptography and relatively few people who hate it,” Hogan added. “We learned this in our final election, where GOP’s Crypto courtship won a lot of votes, but little democratic hostility.”
Hougan said the first bully in the market “stricken me as the right thing (…) I think the market will ultimately make it happen.”
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