The chief investment officer of crypto asset management firm Bitwise predicts Bitcoin will surge well beyond $200,000 if the US ever launches a BTC strategic reserve.
In a new interview on Yahoo Finance, Bitwise CIO Matt Hougan says that if the US government implements a Bitcoin strategic reserve other governments around the world would have to follow suit, sending the flagship crypto asset to astronomical new all-time highs.
“If we do get a Bitcoin strategic reserve where the government is buying Bitcoin – and there’s a bill from Senator Lummis that [would have] the government buy a million Bitcoin – $200,000 Bitcoin is going to be looking quaint. You’re going to be looking at $300,000, $400,000, $500,000 Bitcoin. It’s just too big a story, because governments all around the world would have to do it.”
Hougan believes a Bitcoin strategic reserve has become more likely under US president-elect Donald Trump and his administration.
“When this initial idea was floated, I was somewhat skeptical of it. But over the months, it hasn’t gone away. In fact, we continue to see leaders in the Trump administration suggest that they’re open to it. I still think maybe it’s less than a 50% chance, but it’s not zero. And again, if it happens, or if we start to see it happening in other countries, you’re going to see a rip up in Bitcoin that will make 2024 look pretty docile in comparison.”
Hougan says that Bitcoin will be up more than 91% of its current value at the same time next year due to ‘irrepressible’ demand.
“We expect Bitcoin to be up above $200,000 by this time next year. They’re just three irrepressible sources of demand driving the market. You have ETFs (exchange-traded funds) that are vacuuming up Bitcoin. You have public companies like MicroStrategy vacuuming up Bitcoin. And now we’re talking about governments vacuuming up Bitcoin. At the end of the day it comes down to supply and demand. There’s too much demand, not enough supply. And so I think the price goes higher in 2025.”
Bitcoin is trading for $104,532 at time of writing, down 2.5% in the last 24 hours.
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