$500K Bitcoin 'Easy' Call by Bitwise CIO as US Reserve Proposal Ignites Bold Predictions

Bitcoin could surge to $500,000 as Bitwise CIO Matt Hougan highlights the potential of a US Strategic Bitcoin Reserve. Backed by growing political interest, this initiative could set the stage for unprecedented crypto market shifts.

US Strategic Bitcoin Reserve Could Propel Bitcoin to $500,000

Matt Hougan recently made the bold prediction that Bitcoin may reach $500,000 in an interview, all because of the Strategic Bitcoin Reserve that the Trump government is planning to establish. According to Bitwise's chief information officer, this is far too big of a story, and if governments started doing the same, the flagship cryptocurrency may experience a supply shock.

A number of candidates for the next federal government have indicated their support for the creation of a US Strategic Bitcoin Reserve, which Hougan said has made the notion more practical. Bitcoin will reach $200,000 in 2025, according to Bitwise's newest prediction.

Bitcoin Act of 2024 Pushes for One Million BTC Reserve

But Bitwise's chief information officer is certain that the BTC Reserve project will alter the game and provide the top cryptocurrency more positive momentum.

Along with Donald Trump, Senator Cynthia Lummis has been a key advocate in this campaign through the introduction of the "Bitcoin Act of 2024." The United States would be required to store one million bitcoins for the next four years under this bill if it were to pass.

With the support of people like David Sacks, who will soon be known as the "Crypto Czar," Senator Cynthia Lummis has reiterated her intention to establish the Strategic Bitcoin Reserve, Coingape shares.

Experts Question the Viability of a Strategic Bitcoin Reserve

Whether or not Bitwise will establish a Strategic Bitcoin Reserve is uncertain in light of the CIO's forecast. If the United States were to undermine trust in international markets by suggesting the dollar is vulnerable, no one would profit, according to Nic Carter, a founding partner of Castle Island Ventures, who has stated that he does not anticipate the BTC reserve to materialize.

Another co-founder of BitMEX, Arthur Hayes, shared this view.

Arthur Hayes reiterated his skepticism about the Strategic Bitcoin Reserve in a recent blog article. Politicians, according to the crypto inventor, would prefer to invest newly-minted funds in public goods than Bitcoin.