Matt Hougan Discusses Crypto Rally Fueled by Regulatory Hopes

Matt Hougan, the chief investment officer at Bitwise Asset Management, released a memo on Tuesday titled “Crypto Is Not Going To Wait for the Election”

iscovering New Crypto Heights: Bitwise CIO on Fast Surges With Regulatory Hopes

As bitcoin’s price soared on Tuesday, reaching levels not seen since early June, Bitwise Asset Management’s chief investment officer shared his thoughts on the rapid surges in crypto markets.

In a memo titled “Crypto Is Not Going To Wait for the Election,” Matt Hougan discussed the recent rally, which saw bitcoin climb more than 5% and ether jump over 7% — marking the most significant one-day increase in nearly two months.

Hougan highlighted a plan unveiled by Democratic presidential candidate Kamala Harris on Monday, which included a smart regulatory framework for crypto among other proposals.

This news appeared to have a strong impact on investors, with $555 million being funneled into bitcoin exchange-traded funds (ETFs) on Monday — marking the largest inflow in four months.

Hougan suggested that Harris’s proposal, while making headlines, was more symbolic than transformative for the crypto industry. He compared it to a “Rorschach test” for those on both sides of the regulatory debate but noted its role in influencing market momentum.

Hougan noted that even the smallest piece of favorable news could ignite movement in the crypto space. “That little sliver of good news was enough to send bitcoin up 5%. Enough to push more than $500 million into bitcoin ETFs. Enough for people to start wondering if crypto is finally going to make an assault on all-time highs,” he wrote.

He pointed out that this price activity indicated a large amount of capital waiting to enter the market once regulatory conditions became clearer.

Hougan also recalled his prior forecast on bitcoin's price trajectory in his latest memo. “In last week’s memo, I talked about what was needed to push crypto to new all-time highs and bitcoin above $80,000. In terms of the election, I mentioned that either a GOP victory or a split government would do. My comments implied that we would have to wait until the election before we made the next run on $80K,” he explained.

However, in his latest note, Hougan stated, “After today, I’m not so sure. Monday’s rally tells me people don’t want to be left behind if and when crypto takes off. There is a lot of dry powder on the sidelines. As soon as we get any whiff of clarity, I think we go higher fast.”

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