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In an exclusive interview with Yahoo Finance, Matt Hougan, Chief Investment Officer at Bitwise Asset Management, shared his Bitcoin outlook, predicting significant price appreciation by the end of 2025. ,” Hougan said, attributing the forecast to three main sources of demand: exchange-traded funds (ETFs), corporate investments, and governments. adoption.
Hougan explained, “There are ETFs that hedge Bitcoin, public companies like MicroStrategy are hoarding Bitcoin, and now we’re seeing discussions about governments investing in Bitcoin. Ultimately it boils down to supply and demand—there is too much demand and not enough, which drives the price up.”
When questioned about the sustainability of such demand, Hougan emphasized the gradual awakening of different segments of investors to the demand for Bitcoin’s value. “People are turning to Bitcoin at different speeds. We’ve seen retail investors get involved first, followed by companies and financial advisors, and now institutions are realizing that Bitcoin is part of a diversified portfolio,” he explained.
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“Bitcoin is now a multi-billion dollar global asset, and almost every investor should have some exposure. We still have a large number of investors to go, which is why I believe we are just beginning this journey. We have a lot of places to go,” he added.
How Much Could the Price Rise If the US Buys Bitcoin?
A key aspect of Hougan’s prediction hinges on the potential establishment of the US Strategic Bitcoin Reserve (SBR). Speaking of this, Hougan noted, “If we get a Bitcoin strategic reserve where the government buys Bitcoin, as proposed in Senator Lummis’ bill for the government to buy a million Bitcoin, a $200,000 Bitcoin would look good. You will be looking at three four $500,000 Bitcoin. It is a very big issue because governments all over the world will have to do it. “
Hougan admitted that he was initially skeptical of Trump’s proposals to establish the SBR. “But over the months, it hasn’t actually gone and we continue to see leaders in the Trump Administration suggest that they’re open to it,” Hougan noted. The Bitcoin CIO still thinks the probability of the US government buying Bitcoin is less than 50%, but “not zero,” he added. “If it happens or we start to see it happen in other countries, you’re going to see a Bitcoin explosion that will make 2024 look pretty good by comparison.”
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Hougan also highlighted the role of institutional platforms, specifically citing Coinbase as a potential big beneficiary in the changing crypto landscape. “Coinbase is currently about half the size of Charles Schwab, and we believe it could surpass Schwab in terms of brokerage size,” he said.
“Coinbase has never had big competitors spring up to challenge it; it’s like there’s some level of controlled photography, if you can believe it. As a result, it has been able to base its high margins on brokerages and put things like stablecoins. [..,.] It will also help if it enters the S&P 500; you see institutions buying it widely. I think it’s a really unique situation driven by the fact that there was a lot of regulatory uncertainty—it took away the oil competition and now it’s going to reap those rewards and really build, you know, an industry-leading position in the US.”
Looking ahead to the broader market, Hougan expected an influx of crypto-related companies entering the public markets. “We can expect firms like Kraken, Anchorage, and Chainalysis to come forward and continue to normalize the industry,” he said. “This influx will lead to increased Wall Street filings and institutional investment, setting the stage for a strong IPO window in 2025.”
Despite the optimistic outlook, Hougan acknowledged the risks that could hinder Bitcoin’s growth. “The biggest risk is that politicians don’t keep their promises—if we don’t succeed in clarifying the rules or if we fail to establish a strategic reserve, the expected bull market may not happen,” he warned. “Regulatory and political factors are key drivers of crypto in 2025, and any obstacles in these areas could create significant challenges.”
At press time, Bitcoin traded at $104,212.
The featured image was created with DALL.E, a chart from TradingView.com
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