Originally published on: October 30, 2024
Bitcoin’s price could soar to $200,000 without the need for the US dollar to collapse, says Bitwise chief investment officer Matt Hougan. As investment in “store-of-value” assets grows and fiat currencies continue to devalue, Bitcoin’s value might skyrocket.
Hougan explained that investing in Bitcoin means making two bets at once: Bitcoin will establish itself as a new store-of-value asset, and governments will continue to devalue fiat currencies. These factors will drive increased demand for hard assets like Bitcoin.
With Bitcoin’s current total market capitalization at $1.4 trillion, around 7%-8% of gold’s $18 trillion market cap, Hougan believes Bitcoin can mature and become worth roughly half of gold’s total value, making one Bitcoin worth approximately $400,000.
As governments manipulate the supply of fiat currencies through printing money, more investors will turn to store-of-value assets, driving up the demand for Bitcoin. If Bitcoin maintains a 7% share relative to gold and demand triples, each Bitcoin could be valued at $200,000.
Hougan emphasized that these arguments compound, and if Bitcoin becomes more established in the store-of-value market, reaching seven figures is not far off.
The rise in demand for traditional store-of-value assets has been evident amid global economic uncertainty and geopolitical tensions. Gold prices hit a new all-time high of $2,778 per ounce recently, reflecting the growing interest in such assets.
Moreover, the dollar’s continued devaluation is likely to be a fundamental part of the US industrial policy. Economists have argued that lowering the value of the dollar is necessary for the US to compete globally, particularly against countries like China.
Market analysts predict that Bitcoin could soon reach an all-time high after approaching its March ATH. With Bitcoin trading around $72,392, there is optimism for further price growth in the coming weeks.
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