Bitwise’s Chief Investment Officer, Matt Hougan, has suggested that the price of the leading cryptocurrency could rise to $200,000. He stated that a collapse of the US dollar is not a prerequisite for this increase.
1/ A financial advisor asked me a great question over dinner last week:
Does the U.S. dollar need to collapse for bitcoin to hit $200,000?
The answer is «no.» Here’s why…
— Matt Hougan (@Matt_Hougan) October 29, 2024
«When you invest in bitcoin, you are actually making two bets simultaneously: that bitcoin will establish itself as a new store of value asset, and that governments will misuse fiat currencies, increasing demand for store of value assets,» he wrote.
The market capitalization of the leading cryptocurrency is approximately 7% of gold’s $18 trillion valuation. If bitcoin “matures” and reaches 50%, its price could soar above $400,000, according to Hougan.
«The second argument: the store of value market is growing because governments are misusing their currencies. If this market triples and bitcoin simply maintains its 7% share, each BTC will be worth more than $200,000,» stated Bitwise’s Chief Investment Officer.
Hougan believes these arguments complement each other.
«If bitcoin matures and the store of value market doubles, you quickly reach seven-figure numbers. I consider this the most likely scenario,» he added.
To reach the $200,000 mark, digital gold needs to continue its “current path of maturing as an institutional asset,” the expert noted. A collapse of the US dollar is not a necessary condition for such growth.
In the early hours of Wednesday, October 30, the price of the leading cryptocurrency surpassed $73,000, but failed to reach a new all-time high. The last record on Binance was set on March 14, 2024, at $73,777.
At the time of writing, bitcoin is trading at $72,000.
Previously, analysts at Bernstein reiterated their forecast of the leading cryptocurrency reaching $200,000 by the end of 2025, calling it “conservative.” Similar expectations of $220,000 are held by TV host and Heisenberg Capital founder Max Keiser.
In October, Hougan outlined the conditions for digital gold to rise above $80,000 by the end of 2024.
Among them are Donald Trump’s victory in the US presidential election, a 50 basis point rate cut by the Fed with new stimuli from China, and the absence of major surprises in the industry.