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

Odaily Planet Daily News Bitwise Chief Investment Officer Matt Hougan said that the market's reaction to Trump's crypto reserve plan was "over-interpreted". Although the plan has flaws, it is still good news overall. After Trump announced on Sunday that he would instruct the working group to advance the US crypto strategic reserve plan, including BTC, ETH, XRP, SOL and ADA, these assets rose by 10%, 15%, 25%, 30% and 70% from last week's lows, respectively, but then Bitcoin fell by more than 10% and Ethereum plummeted by more than 15%. Hougan pointed out in a report sent to clients on Tuesday that the market's reservations about the plan are mainly because the reserves include crypto assets other than Bitcoin, "especially the inclusion of speculative assets such as 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 that the initial proposal will not be the final version; second, the US move may trigger a global Bitcoin accumulation competition; finally, once purchased, these crypto assets are likely to be held for a long time and will not be sold. Hougan expects that the Trump administration will eventually move forward with some form of reserve plan. "The fact that the U.S. government has declared crypto assets to be strategic is positive in itself, and I think the market will eventually realize this." (The Block)