Bitwise CIO Matt Hougan Says Bitcoin Will Hit $500,000 if US Reserve Bill Passes
Bitwise CIO Matt Hougan speculates that Bitcoin will surge as high as $500,000 if the US government establishes a strategic reserve for the asset.
The Bitcoin strategic reserve motion is gaining momentum following Trump’s win. The president-elect’s choice of cabinet members also suggests that he intends to keep his end of the bargain and allow cryptocurrencies to thrive in the US.
Amidst the US Bitcoin reserve speculations, Bitwise’s chief investment officer, Matt Hougan, has discussed its impact on the premier asset. In an interview, he noted that if the bill passes, Bitcoin will be worth half a million dollars.
Reserve Implementation to Boost Bitcoin’s Price
Meanwhile, Hougan argued that creating a US Bitcoin stockpile is a big deal for the asset. He emphasized that the ploy would attract more countries globally to the pioneering cryptocurrency, spurring greater demand.
The CIO insisted that the bullish scenario would steer a Bitcoin outburst, pushing the asset past its $200,000 target. Following the reserve creation, Hougan envisions a rip to between $300,000 and $500,000 per Bitcoin.
Notably, the Trump-Bitcoin romance is already sparking FOMO in several countries. At the moment, Russia, Brazil, and the European Union are teasing a Bitcoin strategic reserve idea, while Canada’s Vancouver recently approved a bill allowing them to hold the premier asset.
Bitcoin to Trounce 2024 Performance Next Year
Meanwhile, Hougan has asserted that Bitcoin’s impressive run this year will extensively spill into 2025. The Bitwise CIO reiterated the asset manager’s $200,000 price call, citing three factors that can drive the upswing.
In the interview, he noted that inflows from the US Bitcoin spot exchange-traded funds (ETFs) are a significant source of demand. The investment vehicles have brought in a cumulative inflow of $36.73 billion this year and now holds a staggering 5.76% of Bitcoin’s circulating supply.
Hougan also pointed out that public companies are beginning to accumulate Bitcoin. In addition to regular names like MicroStrategy and Marathon Digital, new entrants like Rumble and Metaplanet have adopted the crypto firstborn as a strategic reserve asset.
Lastly, he mentioned the growing demand among nations towards the asset. The CIO believes this massive inflow catalyst will drain into Bitcoin’s limited supply, sparking a demand shock.
As a result, the scarce asset will appreciate extensively next year and almost double in price to trade at $200,000 without a US reserve asset implementation. In the meantime, Bitcoin trades at $104,128, down 2.4% in the past 24 hours.
