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Bitwise predicts Bitcoin could reach $200K amid fiat concerns

Bitwise predicts Bitcoin could reach $200K amid fiat concerns

GrafaGrafa2024/10/30 13:37
By:Mahathir Bayena

Matt Hougan, Chief Investment Officer at Bitwise, believes Bitcoin (CRYPTO:BTC) could hit $200,000 without requiring a collapse of the US dollar. 

In an October 29 post on X, Hougan explained that Bitcoin’s value growth depends on two key factors: its maturation as a store-of-value asset and governments' ongoing "abuse" of fiat currencies through measures like excessive money printing. 

Hougan responded to a question from a financial advisor about Bitcoin’s potential to reach $200,000 without a collapse in the US dollar. 

He highlighted that investing in Bitcoin essentially involves making two bets: Bitcoin becoming a reliable store-of-value asset, and governments continuing to undermine fiat currencies. 

Currently, Bitcoin’s market capitalization of around $1.4 trillion represents 7-8% of gold’s total $18 trillion market cap. 

Hougan stated that if Bitcoin matures and reaches about half of gold’s market cap, its price could potentially reach $400,000. 

He emphasized that increasing demand for hard assets like Bitcoin would result from government-induced devaluation of fiat currencies. 

“If Bitcoin holds its 7% share relative to gold and demand triples, each Bitcoin would be worth $200,000,” Hougan said. 

He added that the arguments compound, suggesting that if Bitcoin matures further and the store-of-value market doubles, it could eventually reach seven figures. 

This view aligns with the rising demand for traditional store-of-value assets like gold amid global economic uncertainties and geopolitical tensions. 

On October 29, gold prices hit a record high of $2,778 per ounce, driven by market concerns. 

Additionally, a report by Financial Sense suggests that the US might pursue a policy of gradual dollar devaluation as part of its industrial strategy to stay competitive against global economies like China. 

The report recommended measures to support new technologies, counter subsidized competition, and lower the dollar’s value. 

Bitcoin’s market observers believe that the asset could reach a new all-time high soon, following a recent price surge to $73,562.

At the time of reporting, the Bitcoin price was $72,383.13.

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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.

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