By Michael Scott
Bitwise chief investment executive Matt Hougan is optimistic that Bitcoin will hit the $500,000 target, and is still navigating the infancy stages.
The Bitwise exec weighed on Bitcoin’s spectacular run to set a new all-time high daily since Donald Trump’s re-election. A look into the daily charts shows Bitcoin exchanges hands closer to its new peak of 93477, marking a 121.09% year-to-date gain from $42,280 registered at the onset of 2024. The price level represents a 37% rally since the November 5 elections when it traded at $68,711 per CoinGecko data.
Despite the impressive 34.6% leap in Bitcoin’s 30-day run, Hougan profiles such as the onset of a larger journey that the premier asset will navigate.
Bitcoin Roadmap to $500,000 and Beyond?
A Tuesday, November 12 memo to the investors by Hougan argues that while Bitcoin is riding high on the bull run, the crypto is still within the early days. The executive adds that its true milestone will emerge when the price tests $500,000 per coin.
Hougan considers the breakout to the $500K will mark Bitcoin’s transition from an emerging asset to a desirable and mature store of value rivaling gold.
Hougan spotlights that the BTC’s role in the global financial ecosystem is evolving. Although Bitcoin has realized increased institutional adoption among pensions and endowments, such is minimal to indicate meaningful acceptable and stability levels attained by traditional assets.
Hougan notes that for Bitcoin to rival gold in the mature asset category, the crypto must secure wide holding by central banks and global institutions.
Hougan explains the basis of the $500,000 target as a simple comparison to the current market size of gold. Notably, Gold commands a 17 trillion market that dwarfs Bitcoin’s cap, which hovers around $1.77 trillion. If Bitcoin sustains the uptrend trajectory to capture half of gold’s store-of-value market, it will accomplish $500,000 per coin price, Hougan clarifies.
Path to Reach $500K Explained
Hougan considers the Bitcoin march to the $500K price level is imminent, though is dependent on several key factors. The executive finds that broader BTC adoption is necessary particularly when central banks and institutional investors allocate additional capital.
The Bitwise executive notes that governments are holding a fifth of the global gold reserves while having barely 2% of the BTC. The strategic move to bridge this apparent gap is a critical step for the crypto to optimize its potential.
Hougan cites the bill declared by Senator Cynthia Lummis during the Bitcoin Conference in July intending to push for Bitcoin reserve. Such efforts indicate government adoption is taking shape and likely to spur billion-dollar investment in Bitcoin.
The investment executive pegs the $500K target on the BT capturing a sizable portion of the gold’s market share. Besides, he appears optimistic that BTC would surpass that threshold in future gains.
Hougan suggests that the store-of-value assets segment is bound for imminent growth, particularly fueled by government debt and currency debasement. The two deliver the perfect opportunities for Bitcoin’s further gains.
The Bitwise investment expert entertains that Bitcoin is bound to test the $1 million price level aided by the dynamic store-of-value assets poised for massive expansion in future decades. Currently, he considers the $500K price target a reasonable beginning as it navigates the formative stages.
VanEck Exec Forecasts Ambitious $14M Target for Bitcoin
VanEck’s executive for digital assets research, Matthew Sigel, expects BTC will hit a $14M price level in the long run. On Tuesday, November 12, the executive opines that the US will increase Bitcoin holding relative to its gross domestic product (GDP).
Sigel illustrated the case of the Bhutan Republic where the BTC constitutes 33% of the GDP. In particular, Bhutan wallets hold 12,572 BTC currently valued at $11.446 billion.
The crypto expert points out that the US could boost its GDP if it actualizes the Bitcoin Treasury and acquires 1M Bitcoin. Sigel indicates that Bitcoin needs to rally to $14M to account for 33% of the US GDP.
Sigel validates the $14M price target indicating that it lies within the base and bull price prediction by VanEck. The asset manager speculates that in the two scenarios, BTC would change hands between $2.9M and $52.3M respectively.
Meanwhile, Bitcoin has recovered from its slight dip since registering a new peak to trade at $90,950.08, up almost 3.7% in the past 24 hours. It remains on course to hit Bernstein’s $100,000 prediction as the President-elect’s inauguration edges closer.