Bitwise's chief investment officer predicts bitcoin could hit $200,000 without a US dollar collapse, outlining a roadmap for the cryptocurrency to surge to all-time highs.
Bitcoin's Road to $200,000: No Dollar Collapse Needed
Bitwise Asset Management Chief Investment Officer Matt Hougan addressed bitcoin's potential to reach a $200,000 valuation without a collapse of the U.S. dollar on social media platform X on Tuesday. He shared that in a discussion with a financial advisor, he was asked: "Does the U.S. dollar need to collapse for bitcoin to reach $200,000?" The Bitwise CIO responded firmly, "The answer is 'no.'"
Hougan outlined two main factors behind bitcoin's growth potential. He explained that "When you invest in bitcoin, you are actually betting twice at the same time." First, he said: "Bitcoin will succeed in asserting itself as a new 'store of value' asset." Second, he noted: "Governments will abuse fiat currency and increase the demand for 'store of value' assets."
Emphasizing that these two ideas are related yet distinct, he elaborated:
This argument is distinct. Argument 1: Bitcoin accounts for about 7% of the current $18 trillion market cap of gold. If it 'matures' and reaches 50% of the size of gold, then each bitcoin is worth >$400,000.
"Argument 2: The 'store of value' market is growing because governments are abusing their currencies. If this market triples and bitcoin only retains ~7% market share, then each bitcoin is worth >$200,000," the executive described.
Hougan also emphasized how these factors could interact to drive even higher valuations: "It's important that these arguments combine. If bitcoin matures and the store of value market doubles, you'll quickly reach seven figures. FWIW, I think this is the most likely scenario to ultimately happen."
He added that institutional adoption still plays a significant role in this progression and concluded:
So no, the dollar does not need to collapse for bitcoin to reach $200,000. All you need is for bitcoin to continue on its current path to mature as an institutional asset. But it increasingly seems like both parts of the argument will come true. That's why bitcoin is soaring to all-time highs.