The post Crypto Markets Are Misreading Trump’s Strategic Reserve: Bitwise appeared on BitcoinEthereumNews.com.

Este artículo también está disponible en español. The crypto markets have whipsawed following President Donald Trump’s unexpected announcement of a strategic crypto reserve over the weekend. Bitwise Asset Management’s Chief Investment Officer (CIO), Matt Hougan, contends that traders are overreacting to the proposed plan’s details and missing what could be a bullish development for digital assets. Late Sunday, President Trump revealed a United States government initiative to acquire and hold five different cryptocurrencies—Bitcoin, Ethereum, Solana, XRP, and Cardano—in a strategic reserve. Initially, the market response was emphatically positive: Bitcoin’s price surged from around $85,000 to $95,000. However, as Hougan notes in his latest investor memo, that initial optimism was short-lived. By Monday, the major crypto assets named in the announcement had surrendered their gains. Everyone Is Misjudging Trump’s Crypto Reserve Bitwise released its memo on March 4, titled “The Market Has This Wrong: Thoughts on Trump’s Strategic Crypto Reserve.” In it, Hougan points to overly narrow market interpretations as the principal cause behind the abrupt retracement. “The market is overthinking things. For all the flaws in the rollout, the reserve news is bullish.” Related Reading He elaborates on why the proposal is not being greeted with lasting enthusiasm. A large part of the skepticism centers on the White House’s choice of five cryptocurrencies, which critics describe as an overly broad selection. In Hougan’s words: “The inclusion of speculative assets like Cardano feels more calculating than strategic.” Although the plan initially seemed like a vote of confidence from Washington, some crypto commentators—such as Coinbase CEO Brian Armstrong and Castle Island Ventures Founder Nic Carter—have questioned the rationale behind broadening the reserve beyond Bitcoin. Bitwise CEO Hunter Horsley also weighed in shortly after the announcement, publicly expressing a preference for a more conservative, bitcoin-centric reserve. Despite this, Hougan’s memo argues that market…

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Filed under: News - @ March 5, 2025 11:27 am