Bitget App
Trade smarter
Open
HomepageSign up
Bitget>
News>
Bitwise Chief Investment Officer: Bitcoin could rise to $200,000 due to dual forces, not the collapse of the dollar

Bitwise Chief Investment Officer: Bitcoin could rise to $200,000 due to dual forces, not the collapse of the dollar

Bitget2024/10/30 06:13
BTC+0.49%

Bitwise Chief Investment Officer Matt Hougan stated that BTC could rise to $200,000 without the need for a dollar collapse. In his latest investor memo, he said that the value of BTC depends on two independent forces: its role as a digital store of value and inflationary pressure on fiat currency.

Hougan noted that many analysts overlook Bitcoin's broader potential, often assuming its growth depends on a weak dollar. "If you separate these arguments, you'll have a clearer understanding of Bitcoin," he said. He believes the first driving factor is Bitcoin's status as a digital equivalent to gold. Although Bitcoin only accounts for 7% of an estimated $18 trillion gold market, its market cap could significantly increase with investor recognition. He pointed out: "Even if Bitcoin only occupies 25% of the gold market, its price could rise and far exceed $200,000."

The second force comes from potential depreciation in fiat currencies (especially USD), which may prompt more investors to use assets like bitcoin as hedging tools. Given US federal debt reaching $36 trillion dollars, Hougan thinks increasing fiscal pressures will cause significant expansion in the store-of-value market benefiting bitcoin.

He emphasized even if just one force becomes reality; it can still boost bitcoin’s value. If bitcoin grows in share within the store-of-value market then it might reach up to $214k even without inflationary pressure or alternatively an expanding alternative asset market driven by concerns over fiat currencies can also push up bitcoin prices but if both forces converge together then there would be maximum upside potential.

Furthermore, he suggested that ultimately Bitcoin's utility may surpass its role as a store of value and has potential to become an international settlement layer. He believes wider applications can further enhance Bitcoin's worth making it key player within global financial ecosystem.
 
Hougan also warned investors about risks associated with trading bitcoins emphasizing careful consideration towards volatility and regulatory issues.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

Trending news

More
1
Solana introduces SIMD-0337 proposal to implement rapid leader handoff mechanism and enhance network performance
2
Jupiter launches Ultra v3 trading engine, offering improved trade execution and MEV protection

Crypto prices

More
Bitcoin
Bitcoin
BTC
$106,859.5
+2.02%
Ethereum
Ethereum
ETH
$3,874.78
+4.01%
Tether USDt
Tether USDt
USDT
$1
+0.07%
BNB
BNB
BNB
$1,103.69
+5.60%
XRP
XRP
XRP
$2.36
+5.55%
Solana
Solana
SOL
$184.9
+3.59%
USDC
USDC
USDC
$1.0000
-0.01%
TRON
TRON
TRX
$0.3133
+1.73%
Dogecoin
Dogecoin
DOGE
$0.1874
+4.40%
Cardano
Cardano
ADA
$0.6354
+4.80%
How to sell PI
Bitget lists PI – Buy or sell PI quickly on Bitget!
Trade now
Become a trader now?A welcome pack worth 6200 USDT for new users!
Sign up now
Trade smarter