Financial Insights That Matter
Bitwise Chief Investment Officer Matt Hougan has shared three factors he believes could help Bitcoin price soar this year and beyond.
This came in a recent interview on the Unchained podcast, “Bitcoin to $200K+ This Year,” in which he highlighted major entities expected to accumulate BTC.
3 Big Bitcoin Buyers Over the Next Year
According to Hougan, governments will purchase hundreds of thousands of BTC tokens in the coming year. He suggests that this large-scale buying will become a significant driver of Bitcoin’s price growth.
Additionally, corporations are also expected to increase their Bitcoin purchases. In 2024, corporations acquired approximately 350,000 Bitcoin, and Hougan believes this figure will rise in 2025. Hundreds of companies will likely follow the trend, contributing to an ongoing institutional push toward Bitcoin adoption.
Notably, Hougan points to institutional investors recognizing Bitcoin as a crucial component of global capital markets. He asserts that failing to hold Bitcoin could position investors as being “short” against the benchmark of global capital markets. This growing recognition, he believes, will lead to hundreds of billions of dollars flowing into Bitcoin to align with market expectations.
Structural Demand vs. Limited Supply
As demand for Bitcoin increases, Hougan notes that the crypto’s limited supply will become a key factor in driving its price upwards. He highlights that only 165,000 new Bitcoins are mined each year, while demand has been far outpacing this supply.
In 2024, Bitcoin exchange-traded funds (ETFs) alone purchased half a million BTC, while corporations bought 350,000. This imbalance between supply and demand could push prices even higher.
Hougan points out that when Bitcoin prices surged from $72,000 to $100,000 in 2024, existing holders sold off their positions. He predicts similar behavior could occur once Bitcoin reaches new price milestones, particularly at $200,000.
He argues that this price level is where many holders may be inclined to sell, driven by both market psychology and behavioral tendencies.
Views From Industry Experts
While Hougan’s forecast for Bitcoin’s price is optimistic, other analysts remain more cautious. Peter Brandt, a seasoned trader, has expressed skepticism regarding Bitcoin surpassing the $200,000 mark by the end of the decade.
He cites technical barriers that may prevent Bitcoin from achieving this target, although he acknowledges that his analysis is speculative.
Meanwhile, analysts from Bernstein maintain a more bullish outlook. They reaffirm their prediction that Bitcoin will reach $200,000 by the end of 2025.
Bernstein’s confidence is rooted in several factors that they believe will propel Bitcoin’s value in the coming years. The firm first issued this $200,000 target in June 2024 and has continued to stand by it, citing the growing adoption of Bitcoin.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
#1a73e8;">Boost Your Financial Knowledge and Achieve Stability
Discover a growing online community dedicated to delivering financial news, tips, and strategies designed to help you manage money effectively, save smarter, and grow your investments with confidence.
#1a73e8;">Top Financial Tips for Saving and Investing
- Personal Finance Management: Master the art of budgeting, expense tracking, and building a strong financial foundation.
- Investment Opportunities: Stay updated on market trends, learn about stocks, and explore secure ways to grow your wealth.
- Expert Money-Saving Advice: Access proven techniques to reduce expenses and maximize your financial potential.