- Trump’s Crypto Strategic Reserve may heavily favor Bitcoin, despite the initial inclusion of altcoins.
- Market skepticism persisted, but Matt Hougan believes institutional adoption will drive long-term Bitcoin growth.
The growing excitement around President Donald Trump has extended into the crypto space, with discussions heating up over his administration’s potential crypto reserve.
Bitwise CEO predicts Bitcoin’s dominance
While reports suggested that several high-market-cap altcoins may be included, Bitwise CIO Matt Hougan asserted that Bitcoin [BTC] will ultimately dominate the reserve.
In a market note dated on the 5th of March, Hougan explained,
“Market participants have soured on the announcement because the proposed reserve holds more than Bitcoin. The inclusion of small-cap assets in the announcement unnecessarily complicated matters.”
He added,
“After the dust settles, I suspect the final reserve will be nearly entirely Bitcoin, and it will be larger than people think.”
Other execs weighing in
That being said, Hougan pointed out that many prominent figures in the crypto space have questioned the reserve’s composition, particularly the inclusion of non-Bitcoin assets.
For instance, Coinbase CEO Brian Armstrong took to X (formerly Twitter) and noted,
Source: Brian Armstrong/X
Bitwise CEO Hunter Horsley too expressed the same when he wrote,
Source: Hunter Horsley/X
However, despite the imperfect rollout, Hougan believes the market is overlooking the bigger picture.
He remains optimistic, asserting that sentiment will eventually shift in favor of the reserve.
The future looks bright
Drawing parallels to past policy decisions, he noted that Trump’s initial proposals often evolve over time, as seen with tariffs.
Hougan highlighted that a similar pattern could unfold here, reinforcing the long-term bullish case for Bitcoin and the broader crypto market.
He further added,
“While markets worry about the U.S. political response to the five-asset proposal, it’s important to remember that the most important consumers of this news are not here in the U.S., but abroad.”
Source: Bitwise/X
In conclusion, Hougan also acknowledged concerns that the U.S. Crypto Strategic Reserve could face instability with changing administrations.
He worries that future leadership—especially if a Democrat takes office after Trump—might reverse course and liquidate holdings, triggering volatility.
However, he argues that institutional adoption and government-backed reserves could ultimately strengthen Bitcoin’s long-term position, making it a more entrenched asset regardless of political shifts.
Needless to say, he put it best when he concluded,
“The U.S. government declaring crypto assets “strategic” is bullish. I think the market will eventually realize that.”
Market reaction
In the meantime, Bitwise CIO’s prediction has boosted market optimism. At press time, BTC rose 4.78% to $91,677.50 in the last 24 hours, according to CoinMarketCap.
Also, the bullish sentiment extended beyond Bitcoin, as the overall crypto market cap climbed 4.63% to reach $3.01 trillion.
However, Polymarket data shows skepticism, with only 24% believing Trump will establish a Bitcoin reserve within his first 100 days.
Thus, it remains to be seen whether betters have it right or if Trump is truly set on building a crypto reserve.
