New Governmental Backing Could Lead to Unprecedented Bitcoin Growth, Says Bitwise CIO

• Prominent US lawmakers are now backing Bitcoin, potentially leading to significant growth and widespread adoption.
• New legislative proposals, like the Bitcoin reserve bill, signal a dramatic shift in political and public support for Bitcoin.
• Despite recent price drops, optimistic projections foresee Bitcoin reaching millions in value by 2050, boosted by political support.

According to Matt Hougan, chief investment officer of Bitwise, new governmental backing for Bitcoin may change its course. Hougan, who attended a Bitcoin conference in Nashville, says notable US lawmakers are now adopting Bitcoin, which, he says, could lead to unprecedented growth and adoption.

Hougan’s insights come from promises made by influential political figures. Among these promises is Republican candidate Donald Trump’s plan to build a strategic national Bitcoin stockpile.

Additionally, Wyoming Senator Cynthia Lummis announced a Bitcoin reserve bill to address the country’s $35 trillion debt crisis. Moreover, independent candidate Robert F. Kennedy Jr. vowed to have the US Treasury buy 500 Bitcoin per day until the reserves reached 4 million Bitcoin.

These ideas, which were unlikely a year ago, suddenly seem more doable. Hougan noted that, less than two years ago, during the fall of FTX, Bitcoin was trading at $17,000. But now, lawmakers talk about creating a “Bitcoin Fort Knox,” indicating a dramatic change in public opinion.

Political and Institutional Support

The US Department of Justice’s recent partnership with Coinbase underscores the changing landscape. This comes just 12 months after the US securities regulator sued Coinbase, alleging it operated as an unregistered securities exchange. Hougan emphasized that politicians’ support may not stem from genuine belief but from Bitcoin’s growing popularity among Americans.

This shift in political stance aligns with broader public sentiment. Politicians are embracing Bitcoin because Americans are embracing it. The implications of this support are profound, potentially transforming Bitcoin’s role in the financial system.

Future Price Predictions

Although Hougan stayed away from predicting a certain price, some people are more optimistic. Michael Saylor, a Bitcoin investment strategist at MicroStrategy, projected that the cryptocurrency might hit $13 million by 2045. In his most optimistic case, Bitcoin will reach $49 million. Similarly, by 2050, Bitcoin is expected to reach $52 million, according to crypto asset manager VanEck.

Even with the optimistic prognosis, Bitcoin has recently experienced a decrease. On July 29, Bitcoin almost reached $70,000, but its price has since fallen by more than 8%. According to CoinGecko data, it is still 13.4% off its all-time high of $73,737, which was reached on March 14.

These changes point to a bright future for Bitcoin in terms of user acceptance and possible price increases. Prospects for Bitcoin are getting better as institutional and governmental support grows.