As Donald Trump secured his return to the presidency for the 2025-2029 term, Matt Hougan, Chief Investment Officer at Bitwise Asset Management, expressed his optimistic outlook for the cryptocurrency market, stating that it has entered a “golden age.”
In a recent one video shared on social media platform
A new era for crypto regulation
Hougan’s optimism stems from the significant market rally this has caused Trump’s electionwhich he believes will lead to a pro-crypto stance in both the presidency, Congress and the House of Representatives.
The CIO noted recent successes in the digital asset ecosystem Bitcoin (BTC) reached an all-time high of $75,500 and other cryptocurrencies such as Solana (SOL) and other altcoins also posted significant gains in recent days.
Over the past eight years, Hougan argued, the cryptocurrency industry has operated under significant restrictions and faced aggressive attacks enforcement actions from the US Securities and Exchange Commission (SEC) and a large number of lawsuits that created a cloud of uncertainty.
Bitwise CIO expects this regulatory burden to diminish within the first 100 days of Trump’s new administration, as the Republican has consistently expressed support for the growth and innovation of the digital asset sector, with a new regulatory framework on the horizon.
Furthermore, Hougan envisions a landscape characterized by balanced regulation, including clear legislation for stablecoins and a framework that enables this institutional investors to better evaluate cryptocurrencies. This, he argues, will lead to greater investment flows and adoption, paving the way for a bull market that could last for years.
Key catalysts for sustainable market momentum
During the video, Hougan also pointed out that the crypto market was already on a bullish trajectory ahead of the election, fueled by multiple catalysts.
Hougan mentioned the $23 billion net inflow into Bitcoin exchange traded funds (ETFs) as a strong indicator of growing institutional interest, which he believes will increase further in 2025.
In addition, he highlighted the impact of the Bitcoin halving that took place earlier this year, which historically contributes to price increases, as well as the US national debt, which currently stands at $36 trillion and is rising at an alarming rate.
Hougan believes that these factors, combined with a more supportive political climate for cryptocurrencies, will maintain momentum in the market.
While Hougan is optimistic about the future of cryptocurrencies, he also emphasized the need for caution among investors. He acknowledged that the crypto space is diverse, with both promising and underperforming projects. Understanding the differences between them is crucial to making informed investment decisions.
At the time of writing, Bitcoin is trading at $75,323 after hitting an all-time high of $75,500 on Wednesday.
Featured image of DALL-E, chart from TradingView.com