By Michael Scott
- Bitwise investment executive downplays view that US Dollar will collapse for BTC to realize $200,000, sees potential to capture gold market partially.
- While Bitcoin is yet to mature fully, more global financial entities hold it and are surviving market challenges.
- Bitwise investment heads forecast opportunities for Bitcoin to realize substantial business growth and potentially match half of the gold’s market cap.
- Hougan indicates that the increased Bitcoin share could spark significant price increases.
The Bitwise chief investment executive Matt Hougan faults erroneous perspectives on Bitcoin’s price movement. A recent memo by the investment expert responded to repeated inquiries on whether the US dollar must collapse for the BTC to test the $200,000 level. He rules out such necessity.
Bitcoin Unmatched Progress, Though Yet to Mature
Most Bitcoin holders acknowledge that the crypto asset is now a store of value. Hougan echoes this view, indicating the long journey BTC has realized for the short years it has existed.
Hougan indicates that Bitcoin is a must-hold for at least 60% of the largest global hedge funds, asset managers, and countries. The investment officer hails Bitcoin’s journey in surviving bulls, bears, scandals, and regulatory scrutiny to win its acceptance.
The CIO indicates that Bitcoin is yet to mature, indicating the absence of media trust and inadequate understanding, in addition to the low institutional adoption. However, Hougan considers that the situation is slowly changing following the ongoing adoption of spot BTC exchange-traded funds (ETFs).
Hougan considers that Bitcoin has room for future growth and could match the market value of gold at $900,000. He indicates that BTC does not even have to scale that high.
Hougan notes that Bitcoin’s market value of $1.3 trillion translates to 7% of gold’s $18 trillion market cap.
Hougan acknowledges being unaware if a mature bitcoin matches half, equal, or twice the gold value in the new demographic. The truth is that it does not amount to 7% of the gold.
Is Money Printing a ProBitcoin Move?
Hougan weighs into the discussion of the relentless money printing impact on Bitcoin prices in the US. The concern is the argument that the US debt is beyond its control, with $1 trillion added every 100 days. The addition pushes the total debt to nearly $36 trillion, with debt servicing costs proving unsustainable.
The US treasury shows the debt amount increasing from $394 billion to $35.6 trillion in 100 years. Considering that the debt is not slowing, Hougan coincides with the cycle, and money printing will usher in the need for an expanded store-of-value market as investors pursue a haven from inflation.
Hougan considers it more difficult to predict the store-of-value market size and whether it will triple in the next decade. Assuming that Bitcoin will have a 7% market share, its price would then triple, thus hitting the $200K target.
Hougan indicated that in the scenario where the store-of-value space fails to grow with the US placing debt under control, BTC would still scale the market share in a key win. The executive considers the BTC to witness market value growth to a quarter of the gold market, and no development emerges. With no new utilization and the absence of spiraling debt, Bitcoin will realize a $214,000 price level.
Bullish Coincidence for Bitcoin
Bitwise executive considers where the BTC market share and store-of-value space to grow, which would create a win-win scenario. Such an outcome is most likely.
The executive rules out the need for a collapse of the US dollar since it can realize $200K by attaining a portion of the gold’s existing market. He opines that were the governments to abuse the currencies and BTC matures, it could blast beyond the $200K.
Bitcoin came just 200 shy of matching the all-time-high (ATH) of $73,737 when it set the day’s peak at $73,562.33
per CoinGecko data. It has since then cooled off to exchange hands at $72,039.15, just 2.29% below the ATH. If Hougan ’s analysis holds true, a new peak for Bitcoin is bound to occur.