Matt Hougan, the Chief Investment Officer of Bitwise Asset Management, has said that the current direction of the crypto industry will not change, irrespective of the outcome of the US presidential election.
In a recent note to investors called “Crypto Has Already Won,” Hougan countered that politics could affect short-term investor sentiment but that the long-term trend was positive for such assets as Bitcoin and Ethereum. He remains optimistic about the future of cryptocurrency and said, “Washington can’t stop crypto.”
According to Hougan, a Trump win may be better for crypto in the short term, while a win for Senator Kamala Harris could mean more regulatory pressure, especially on altcoins. However, he said that a Democratic sweep would be the most threatening as some elements within the party remain quite hostile to digital assets. Despite potential regulatory hurdles, Hougan stated, “Even in that scenario, I’d buy the dip.”
Crypto market experiences significant growth since 2020
The US presidential election presents a suitable time to assess the dynamics of the digital currency market post-November 2020. Hougan pointed to the significant progress that has been made in this environment, including the “Operation Choke Point 2.0” and the several legal battles with the SEC. He pointed out that attention is usually paid to short-term changes in prices while the big picture is lost.
Analyzing the crypto space between November 2020 and November 2024, Hougan presented some impressive growth numbers. Bitcoin’s market value appreciated from $13,677 to $69,492, a 408% jump, while Ethereum’s value soared to $2,492 from $388, reflecting a 552% gain. Other coins, such as Solana, had a much steeper surge; it went from $1.49 to $165.12, a rise of over 10000%.
Additionally, open interest for CME Bitcoin Futures rose from $570 million to $10.58 billion, a 1,756% increase, and the seven-day average daily transaction volume for cryptocurrencies rose from $9.68 billion to $39.32 billion, a 306% increase. Decentralized exchange volumes also skyrocketed to $156.5 billion from $12.6 billion in 2020, an 11,142% increase.
Similarly, the assets under management have also performed similarly, and the Bitcoin spot ETF holdings are projected to increase from $0 in 2020 to $71.46 billion in 2024. The stablecoin assets rose from $3.87 billion to $177.83 billion, and the total value locked in DeFi applications was $139.3 billion.
Hougan predictions
Hougan ended by noting that the stablecoin market and DeFi are set to expand while real-world applications of crypto will strengthen. He said that more tokenized assets would continue to be incorporated by Wall Street and that the blockchain networks would develop, with increased speed and cost-effectiveness.
Hougan noted that the 2024 elections may be a contributing factor to an uncertain near-future for the crypto market, but he did not waver in his long-term bullishness. He stated, “Tuesday’s election is more of a speed bump than a roadblock for crypto’s long-term growth trajectory.”
