Author: Martin Young, CoinTelegraph; Translated by: Deng Tong, Golden Finance
Bitwise Chief Investment Officer Matt Hougan stated that increasing investment in 'store of value' assets and the ongoing depreciation of fiat currencies could push Bitcoin's price up to six figures without a collapse of the dollar.
In a post to X on October 29, Hougan responded to a question he received from a financial advisor, asking whether Bitcoin could reach $200,000 in the absence of some form of collapse of the U.S. currency. 'When you invest in Bitcoin, you are actually making two bets at the same time,' Hougan said when addressing the question in a post.
He stated that Bitcoin will successfully position itself as a 'new store of value asset,' while the government will continue to 'abuse fiat currency' — which naturally leads to increased demand for hard assets like Bitcoin.
Hougan stated that while there are two arguments addressing the initial question, they represent two different viewpoints, each with its own potential price outcomes.
Bitcoin's total market capitalization is $1.4 trillion, currently about 7-8% of gold's $18 trillion market cap, but Hougan stated that Bitcoin could 'mature,' valued at about half of gold's total value, making each Bitcoin worth roughly $400,000.
He added that more investors will likely prefer to hold value assets due to the government's current 'abuse' of control over the supply of fiat currency through money printing.
If Bitcoin captures only 7% of the share relative to gold, and the demand for Bitcoin alone triples, then each BTC would be worth $200,000.
'Importantly, these arguments are complex. If Bitcoin matures and the store of value market doubles, you will quickly reach seven figures,' he said.
'I believe this is ultimately the most likely scenario.'
Source: Matt Hougan
Amid increasing global economic uncertainty and heightened geopolitical tensions in the Middle East, the demand for more traditional store of value assets has surged, with gold prices hitting a record high of $2,778 per ounce on October 29.
Additionally, according to a report by the institutional investor news outlet Financial Sense on October 29, the continuous depreciation of the dollar may become a central part of U.S. industrial policy.
Economists Mark Fasto and Ian Fletcher argued in a report that the U.S. needs a strong industrial policy to compete in the global economy, particularly against China.
They stated that such policies 'should include support for new technologies, prevention of subsidy competition, and joint efforts to reduce the value of the dollar.'
Declining purchasing power of the dollar. Source: Visual Capitalist
Several market commentators believe that Bitcoin was just a step away from its historic high in March during Tuesday's trading on October 17, and it is expected to reach a new all-time high in the coming weeks.
