While the cryptocurrency market continues to benefit from the launch of spot Bitcoin ETFs and increased applications for Ethereum ETFs, the Bitcoin price managed to reach an all-time high on some cryptocurrency exchanges other than Binance today.
Bitwise Asset Management's Chief Investment Officer Matt Hougan shared his views with Yahoo Finance, explaining the factors driving the ongoing rally and potential obstacles ahead.
Hougan noted that recent ETF launches have been an unprecedented success, exceeding all expectations in terms of demand. Hougan, who attributed the rise in Bitcoin prices to a simple supply-demand dynamic, said ETFs absorbed more than 100% of the net new Bitcoin supply.
Despite concerns about a potential market downturn, Hougan remained optimistic, noting that sustained demand from ETFs could continue to push prices higher. He warned that selling pressure from long-term Bitcoin investors could pose a risk to the rally, but expressed confidence in persistent demand for cryptocurrencies.
In addition to market dynamics, Hougan highlighted the importance of the upcoming 2024 US presidential election on crypto regulations. He highlighted the potential impact of the election on crypto policies, suggesting that political developments could influence regulatory trends.
As cryptocurrencies gain traction among voters, especially in the United States, Hougan predicts that politicians will increasingly prioritize crypto-friendly policies to appeal to a growing base of crypto-invested citizens. Hougan predicts that as crypto adoption continues, there will be a shift from regulatory hurdles to regulatory support.
Regarding the potential matchup between Biden and Trump in the 2024 elections, Hougan suggested that crypto would likely benefit regardless of the outcome.
The analyst further explained that he expects the current cryptocurrency rally to continue into the coming summer months and even beyond.
*This is not investment advice.
