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In an unique interview with Yahoo Finance, Matt Hougan, Chief Investment Officer at Bitwise Asset Management, shared his bullish outlook on Bitcoin, projecting vital value appreciation by the top of 2025. “We expect Bitcoin to be up above $200,000 by this time next year,” Hougan said, attributing this forecast to a few major sources of demand: exchange-traded funds (ETFs), company investments, and governmental acquisitions.
Hougan elaborated, “There are ETFs that are vacuuming up Bitcoin, public companies like MicroStrategy are accumulating Bitcoin, and now we’re seeing discussions about governments investing in Bitcoin. It ultimately boils down to supply and demand—there’s too much demand and not enough supply, which drives the price higher.”
When probed concerning the sustainability of such demand, Hougan emphasised the gradual awakening of various investor segments to Bitcoin’s worth proposition. “People just wake up to Bitcoin at different paces. We’ve seen retail investors engage first, followed by companies and financial advisors, and now institutions are recognizing that Bitcoin belongs in a diversified portfolio,” he defined.
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“Bitcoin is now a global macro asset worth a few trillion dollars, and virtually every investor should have some exposure. We still have a large number of investors to go, which is why I believe we’re still early in this journey. We have many quarters to go,” he added.
How High Can Price Go If The US Buys Bitcoin?
A pivotal side of Hougan’s forecast hinges on the potential institution of a US Strategic Bitcoin Reserve (SBR). Addressing this, Hougan remarked, “If we do get a Bitcoin strategic reserve where the government is buying Bitcoin, as proposed in Senator Lummis’ bill for the government to purchase a million Bitcoin, $200,000 Bitcoin is going to be looking quaint. You’re going to be looking at three four $500,000 Bitcoin. It’s just too big a story because governments all around the world would have to do it.”
Hougan admitted that he was first skeptical about Trump strategies to determine a SBR. “But over the months, it hasn’t gone away in fact we continue to see leaders in the Trump Administration suggest that they’re open to it,” Hougan remarked. The Bitcoin CIO nonetheless thinks that the chances of the US authorities shopping for Bitcoin is lower than 50%, however “it’s not zero,” he added. “If it happens or if we start to see it happening in other countries, you’re going to see a rip up in Bitcoin that will make 2024 look pretty docel in comparison.”
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Hougan additionally highlighted the function of institutional platforms, particularly citing Coinbase as a possible main beneficiary within the evolving crypto panorama. “Coinbase is currently about half the size of Charles Schwab, and we believe it could surpass Schwab in brokerage size,” he famous.
“Coinbase hasn’t had major competitors bubbling up to challenge it; it’s sort of had a degree of regulatory capture, if you can believe it. As a result, it’s been able to sustain its high margins in brokerages and then layer on things like stablecoins. [..,.] It’ll also help if it gets into the S&P 500; you see institutions buying it broadly. I think it’s a really unique situation driven by the fact that there was so much regulatory uncertainty—it cleared the competitive fat path and now it’s going to reap those rewards and build a really, you know, maybe an unsalable position leading this industry in the US.”
Looking forward to the broader market, Hougan anticipated an inflow of crypto-related firms getting into public markets. “We can expect firms like Kraken, Anchorage, and Chainalysis to go public, further normalizing the industry,” he said. “This influx will lead to increased Wall Street coverage and institutional investment, setting the stage for a robust IPO window in 2025.”
Despite the optimistic outlook, Hougan acknowledged potential dangers that might impede Bitcoin’s development. “The biggest risk is that politicians don’t deliver on their promises—if we don’t achieve regulatory clarity or fail to establish a strategic reserve, the expected bull market might not materialize,” he cautioned. “Regulatory and political factors are crucial drivers for crypto in 2025, and any setbacks in these areas could pose significant challenges.”
At press time, Bitcoin traded at $104,212.
Featured picture created with DALL.E, chart from TradingView.com