If Bitcoin establishes itself as a store of value and governments continue devaluing their fiat currencies, #BTC☀ could reach six-figure territory, predicts Matt Hougan, Chief Investment Officer at Bitwise.
Hougan believes that rising interest in “store of value” assets and ongoing fiat currency devaluation could push Bitcoin’s value to $200,000, even without a collapse of the US dollar.
Two Key Bets in Bitcoin Investment
In an October 29 post on X, Hougan responded to a question from a financial advisor asking whether Bitcoin could reach $200,000 without a dollar collapse. He explained that investing in Bitcoin is essentially betting on two things: Bitcoin becoming a recognized store of value and governments continuing to “misuse” fiat currencies, which will drive higher demand for “hard” assets like BTC.
Hougan clarified that while these two factors are interconnected, they bring different potential price scenarios.
Comparing Bitcoin and Gold as Stores of Value
Bitcoin’s current market cap is approximately $1.4 trillion, about 7-8% of gold’s $18 trillion market cap. However, Hougan suggests that if #bitcoin☀️ “matures” to reach half the value of gold, one BTC could be worth roughly $400,000.
He added that due to governments’ “misuse” of fiat money control through printing, investors are increasingly inclined to seek value-storing assets. If Bitcoin maintains a 7% share relative to gold and demand triples, each BTC could be valued at $200,000.
The Importance of Cumulative Effects
“The key is that these factors add up,” Hougan explained. “If Bitcoin reaches maturity and the store of value market doubles, values quickly rise into the seven-figure range.”
Geopolitical Tension and Rising Demand for Value-Storing Assets
With growing global economic uncertainty and Middle Eastern tensions, demand for traditional assets like gold has surged, hitting a new all-time high of $2,778 per ounce on October 29.
The US dollar’s devaluation will likely remain part of US industrial policy, according to a report by institutional investor Financial Sense. Economists Marc Fasteau and Ian Fletcher argue that the US needs a strong industrial policy to compete with China. This policy should include support for innovation, protection against subsidized competition, and collaborative efforts to reduce the dollar’s value.
Some analysts suggest Bitcoin is set to reach a new all-time high in the coming weeks, as it neared the March record with a price of $73,562 on October 29. It then slightly pulled back and is now trading at $72,392.
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