The distribution of Mt.Gox assets, sales by German authorities, and the potential sale of coins seized from Silk Road will not hinder Bitcoin’s rise to $100,000 by the end of the year, according to Bitwise CIO Matt Hougan, as reported by The Block.
The expert believes these factors will have only a short-term impact, exacerbated by seasonally low liquidity volumes, he added.
Hougan identified five “tailwinds” that he believes will drive such expectations:
- inflows into spot Bitcoin ETFs;
- halving of the first cryptocurrency;
- anticipated launch of spot Ethereum ETFs;
- changes in the political landscape in the US;
- the prospect of a rate cut by the Fed.
The Bitwise CIO expressed confidence in continued inflows into BTC ETFs “amounting to billions of dollars” in addition to the current $15 billion since the registration of products.
He cited the approval of instruments by major asset management platforms, including Morgan Stanley and Wells Fargo, as a driver.
Hougan estimated a potential inflow of $15 billion into ETH ETFs.
Separately, the specialist highlighted “tectonic shifts” in the attitude towards cryptocurrencies among politicians, thanks to Republicans who have included digital assets in their agenda for this year.
The top manager also noted expectations of two Fed rate cuts by year-end, which “overall is favourable for cryptocurrencies.”
“If you add to this the active growth of the stablecoin market, the development of L2, and the increasingly active participation of organizations like BlackRock, the right combination of events in the second half of the year could easily push Bitcoin to $100,000 and propel Ethereum to ATH,” concluded the expert.
Earlier, Standard Chartered maintained expectations of Bitcoin returning to its all-time high in August and subsequently rising to $100,000 by the US presidential elections in November.