As Donald Trump secured his return as president for the 2025-2029 term, Matt Hougan, chief investment officer at Bitwise Asset Management, expressed an hopeful outlook for the cryptocurrency market, declaring that it had entered a “golden age.”
In recent video shared on social media platform X (formerly Twitter), Hougan highlighted the implications of Trump’s victory for the digital asset sector, highlighting the potential for a more supportive regulatory environment.
A novel era of cryptocurrency regulation
Hougan’s optimism stems from the significant market growth triggered by Trump’s electionwhich he believes will lead to a pro-cryptography position in both the Presidency, Congress, and the House of Representatives.
The CIO has seen recent successes in the digital asset ecosystem, including: Bitcoin (BTC) reaching an all-time high of $75,500, and other cryptocurrencies such as Solana (SOL) and other altcoins have also seen significant gains over the past few days.
Hougan argued that for the past eight years, the cryptocurrency industry has been operating under significant constraints, facing aggressive ones enforcement actions from the U.S. Securities and Exchange Commission (SEC) and numerous lawsuits that have created a cloud of uncertainty.
CIO Bitwise expects this regulatory pressure to begin to ease in the first 100 days of the novel Trump administration, as the Republican has consistently shown his support for the growth and innovation of the digital asset sector with a novel regulatory framework on the horizon.
Moreover, Hougan envisions a landscape characterized by balanced regulation, including clear stablecoin regulations and a framework that allows for this institutional investors to better evaluate cryptocurrencies. He believes this will lead to increased investment flows and adoption, paving the way for a bull market that could last for years.
Key catalysts for sustained market momentum
During the video, Hougan also noted that the cryptocurrency market was already on an upward trajectory before the election, driven by multiple catalysts.
Hougan cited $23 billion in net inflows into Bitcoin listed funds (ETF) as a sturdy indicator of growing institutional interest, which is expected to accelerate further in 2025.
Additionally, he highlighted the impact of the Bitcoin halving that took place earlier this year, which has historically contributed to price increases, as well as the US public debt, which currently stands at $36 trillion and is growing at an alarming rate.
Hougan believes that these factors combined with a more supportive political climate for cryptocurrencies, will maintain market momentum.
While Hougan is hopeful about the future of cryptocurrencies, he also stressed the need for investors to remain cautious. He acknowledged that the crypto space is diverse and includes both promising and underperforming projects. Understanding the differences between them is crucial to making informed investment decisions.
As of this writing, Bitcoin is trading at $75,323, having hit an all-time high of $75,500 on Wednesday.
Featured image from DALL-E, chart from TradingView.com
