If the government considers strategic reserves, Bitcoin's price could reach $500,000, with growing demand from ETFs, corporations, and institutions exceeding the limited supply, thereby significantly driving up prices.
A $500,000 Bitcoin could be next — once reserves start to take effect, $200,000 will become outdated.
Matt Hougan, Chief Investment Officer of Bitwise Asset Management, shared his bullish outlook on Bitcoin during an interview with Yahoo Finance last week. Bitwise predicts that by the end of next year, Bitcoin's price could exceed $200,000, attributing this surge to strong demand drivers. He stated:
The executive emphasized that exchange-traded funds (ETFs), companies like Microstrategy, and even governments are increasingly buying Bitcoin, pushing prices higher while supply remains limited. He pointed out, 'Ultimately, it comes down to supply and demand. Too much demand, not enough supply, so I think the price will be higher in 2025.'
Hougan emphasized that interest in BTC is growing at different rates across various fields. 'I think the reality is that people's awareness of Bitcoin is growing at different speeds,' he stressed.
A Bitwise executive detailed that initially, retail investors were the leaders, followed by companies and financial advisors. Now, institutional investors are starting to get involved as they recognize Bitcoin's durability and portfolio potential. He described, 'They have to start from zero to get to 1%. BlackRock is now saying it's 2%, so it is this series of ongoing educational breakthroughs that are bringing newcomers into the market.'
When speculating about Bitcoin's future, Hogan stated that government involvement could further drive up Bitcoin's price. He cited a proposal from Senator Cynthia Lummis advocating for the U.S. government to purchase one million Bitcoins and commented:
Although initially skeptical of the concept, Hogan acknowledged that global leaders and former U.S. officials are becoming increasingly interested in it. 'It hasn't gone away. In fact, we continue to see leaders from the Trump administration express that they are open to it,' he said, concluding that while the likelihood may be less than 50%, this possibility is real and could further drive Bitcoin's surge.
