Odaily Planet Daily News Bitwise Chief Investment Officer Matt Hougan stated that BTC could rise to $200,000 without the need for a dollar collapse to drive it. In his latest investor memo, he noted that the value of BTC depends on two independent forces: its role as a digital store of value and the inflationary pressures of fiat currency. Hougan pointed out that many analysts overlook the broader potential of Bitcoin, often believing its growth depends on a weakening dollar. 'If you separate these arguments, you will have a clearer understanding of Bitcoin,' he said. Hougan believes the first driving factor is Bitcoin's status as a digital equivalent to gold. Although Bitcoin only accounts for 7% of the estimated $18 trillion gold market, there is potential for Bitcoin's market capitalization to grow significantly as investors recognize it. He noted, 'Even if Bitcoin only captures 25% of the gold market, its price could rise and far surpass $200,000.' The second force comes from the potential depreciation of fiat currency (especially the dollar), which could drive more investors to view assets like Bitcoin as a hedge. Given that US federal debt has reached $36 trillion, Hougan believes that the increasing fiscal pressure will lead to a significant expansion of the value storage market, benefiting Bitcoin. He emphasized that even if only one of these forces comes to fruition, Bitcoin's value could rise. If Bitcoin's share of the value storage market increases, it could reach $214,000 even without inflationary pressure. Conversely, the expansion of alternative asset markets driven by concerns about fiat currency could also push up Bitcoin's price. However, the greatest upside potential arises when both forces converge. Additionally, he stated that Bitcoin's utility may ultimately transcend its role as a store of value, with the potential to become a layer for international settlement. He believes broader applications could further enhance Bitcoin's value, making it a key player in the global financial ecosystem. Hougan also warned investors to be mindful of the risks associated with Bitcoin trading, emphasizing the need to carefully consider volatility and regulatory issues. (CryptoSlate)

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