Bitwise’s Chief Investment Officer (CIO), Matt Hougan, recently provided insight into the potential rise of Bitcoin’s price to $200,000. Contrary to popular belief, he believes that the US dollar does not need to collapse for Bitcoin to reach this valuation.
In a detailed analysis shared on social media, Hougan explained his rationale behind this perspective. He stated that investing in Bitcoin entails two main risks. The first is whether Bitcoin can establish itself as a “store of value” asset similar to gold. The second is the increasing pressure on fiat currencies due to government economic policies, which could drive greater demand for alternative assets like Bitcoin.
Hougan pointed out that Bitcoin’s current market cap is only about 7% of gold’s estimated $18 trillion market cap. If Bitcoin were to mature and reach 50% of gold’s market cap, the value of one Bitcoin could surpass $400,000.
Furthermore, the growing demand for “store of value” assets, driven by potential mismanagement of fiat currencies by governments, further supports Bitcoin’s price potential. Hougan suggested that if the broader market for such assets triples and Bitcoin maintains its 7% market share, its price could exceed $200,000.
Importantly, Hougan emphasized that these two arguments are separate but complementary. He believes that if Bitcoin continues to mature as a store of value asset and the market for such assets expands, its value could reach seven figures rapidly.
According to Hougan, the key to Bitcoin’s rise to $200,000 lies in its growth as an institutional asset, rather than the collapse of the US dollar.
*This analysis should not be considered investment advice.
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