US Bitcoin Reserve Could Push Price To $500,000: Expert
in exclusive interview Matt Hougan, chief investment officer of Bitwise Asset Management, shared his bullish outlook on Bitcoin with Yahoo Finance, predicting that Bitcoin prices will rise significantly by the end of 2025. “We expect Bitcoin prices to top $200,000 by this time next year,” Hougan said, attributing this prediction to three main sources of demand: Exchange Traded Funds (ETFs)corporate investment and government acquisitions.
Hougan elaborated, “There are ETFs that are accumulating Bitcoin, public companies like MicroStrategy that are accumulating Bitcoin, and now we’re seeing talk about governments investing in Bitcoin. Ultimately it comes down to supply and demand — too much demand and not enough supply,” Hougan elaborated. This drives up prices.”
When asked about the sustainability of this demand, Hougan highlighted the gradual awakening of different investor groups to Bitcoin’s value proposition. “People are just recognizing Bitcoin at different rates. We saw retail investors getting involved first, then corporations and financial advisors, and now institutions are recognizing Bitcoin as part of a diversified portfolio,” he explained.
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“Bitcoin is now a multi-trillion dollar global macro asset that almost every investor should have some investment in. We still have a large number of investors waiting, which is why I believe we are still in the early stages of this journey . . We still have a lot of quarters to go,” he added.
If the United States buys Bitcoin, how high will the price go?
A key aspect of Hougan’s prediction hinges on the possibility of the establishment of the U.S. Strategic Bitcoin Reserve (SBR). Speaking on the issue, Hougan said: “If we do establish a strategic reserve of Bitcoin and let the government purchase Bitcoin, as is proposed in Senator Lummis’ bill for the government to purchase 1 million Bitcoin, then 20 $10,000 in Bitcoin is going to look weird. You’re going to see three or four $500,000 in Bitcoin. That’s a big story because governments around the world have to do that.”
Hogan admits he first built a relationship with Trump Styrene-butadiene rubber. “But over the months, this hasn’t gone away, and in fact we’ve continued to see leaders in the Trump administration saying they’re open to it,” Hugan said. The Bitcoin CIO still believes the chance of the U.S. government buying Bitcoin is less than 50%, but “it’s not zero,” he added. “If that happens, or if we start to see this happen in other countries, you’re going to see a rise in the price of Bitcoin, which will make 2024 look pretty quiet by comparison.”
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Hougan also emphasized the role of institutional platforms, singling out Coinbase as a potential major beneficiary of the growing cryptocurrency space. “Coin library Currently about half the size of Schwab, we believe its brokerage business could be larger than Schwab’s,” he noted.
“Coinbase hasn’t had a major competitor emerge to challenge it; it’s somewhat subject to a degree of regulatory capture, if you can believe it. As a result, it’s been able to maintain high margins on its brokerage business and then invest in products like stablecoins. (.., .) If it goes into the S&P 500 Indexes will help as well; you’ll see institutions buying into it broadly and I think it’s a very unique situation because there’s so much regulatory uncertainty – it clears the way for competition and now it’s going to get those. Give back and build a real, you know, maybe a leading position in the industry.”
Looking at the broader market, Hougan expects an influx of crypto-related companies into the public markets. “We expect companies such as Kraken, Anchorage and Chainalysis to go public, further normalizing the industry,” he said. “This influx will lead to increased Wall Street coverage and institutional investment, setting the stage for a strong IPO window in 2025.”
Despite the positive outlook, Hogan acknowledged there are potential risks that could hinder Bitcoin’s growth. “The biggest risk is politicians not delivering on their promises – if we fail to achieve regulatory clarity or fail to build strategic reserves, Anticipating a bull market “Probably won’t happen,” he warned. “Regulatory and political factors are key drivers of cryptocurrencies in 2025, and any setbacks in these areas could pose significant challenges.” “
At press time, Bitcoin was trading at $104,212.
Featured image created using DALL.E, chart from TradingView.com
