Bitcoin could soar to $500,000 if Trump creates a national reserve

The creation of a national bitcoin reserve could propel the cryptocurrency's price to as much as $500,000, according to the CIO of the largest crypto fund manager in the U.S.

Matt Hougan, Chief Investment Officer of Bitwise Asset Management, recently told Yahoo! Finance that such a move by the U.S. government could spark a domino effect, encouraging other nations to follow suit. Hougan predicted that bitcoin could see a 380% increase from its current price, potentially reaching $500,000.

“If we do get a bitcoin strategic reserve where the government is buying bitcoin … $200,000 bitcoin is going to seem modest. You’ll be looking at $300,000, $400,000, $500,000 bitcoin. It’s just too significant a development, because governments worldwide would have to respond,” Hougan said.

Hougan admitted initial skepticism when former President Trump proposed the idea of a national bitcoin reserve during his campaign. However, he noted the concept "hasn’t gone away," citing a recent crypto bill introduced by Wyoming Senator Cynthia Lummis and growing openness to the idea within Trump's circle. Trump also alluded to the reserve again during a recent interview at the New York Stock Exchange.

“I still think it’s less than a 50% chance, but it’s not zero,” Hougan said. “If it happens—or if we start to see other countries adopt similar measures—you’re going to witness a bitcoin surge that makes 2024 look calm by comparison.”

Bitcoin has already seen a significant rally, rising 55% since the presidential election and over 140% year-to-date.

Apart from the potential impact of a strategic bitcoin reserve, Hougan predicted that bitcoin could climb to $200,000 within the next year as investor demand continues to grow.