Bitcoin could hit six figures sooner than expected, fueled by institutional money pouring into exchange-traded funds (ETFs), economic uncertainty, and the U.S. presidential election, according to the chief investment officer of asset manager Bitwise. The CEO highlighted factors such as the GOP’s growing support for cryptocurrencies and inflation concerns as driving investors toward BTC. With regulatory clarity and supply constraints from the bitcoin halving, he predicts a surge is imminent.
Bitwise CIO Predicts Bitcoin Price Rise Amid Changing Market
Matt Hougan, chief investment officer at asset manager Bitwise, shared an updated outlook on bitcoin on Friday on social media platform X, highlighting the cryptocurrency’s potential to reach six figures, driven by a range of market forces. He wrote:
We are heading towards a six figure bitcoin.
Among the key factors driving bitcoin’s trajectory, Hougan noted the sharp increase in exchange-traded fund (ETF) inflows. With billions of dollars flowing into spot bitcoin ETFs, Hougan believes that growing institutional interest is a significant driver of BTC’s rise.
The Bitwise CEO also cited the U.S. presidential election as a major influence, with different outcomes potentially affecting the future of bitcoin. A potential GOP victory led by former U.S. President Donald Trump is seen as beneficial for cryptocurrencies, while a Democratic victory could pose more regulatory challenges. However, Hougan recently noted that even within the Democratic Party, figures like Representative Maxine Waters have softened their stance, suggesting a potential shift in crypto regulation.
Economic factors such as the “infinite” U.S. deficit are another driver. With bipartisan recognition of the country’s worsening fiscal imbalances, many investors are turning to bitcoin as a hedge against inflation. Additionally, China’s economic stimulus efforts and global interest rate cuts, particularly from the U.S. Federal Reserve and the European Central Bank (ECB), are contributing to bitcoin’s price rally.
Hougan recently revised his outlook on the pace of bitcoin's price increase. Following a 5% surge in BTC prices, fueled by Democratic candidate Kamala Harris' proposed regulatory framework for cryptocurrencies, Hougan noted that even small pieces of favorable news can trigger significant market movements. He noted that the rally, which has infused $555 million into bitcoin ETFs, illustrates how much "dry powder" is waiting on the sidelines for clearer regulatory conditions. Hougan believes that if regulatory clarity comes sooner, bitcoin could surpass $80,000 much faster than expected.
Furthermore, the Bitwise CIO went on to emphasize that bitcoin halving creates a supply constraint, which has historically pushed prices higher. Finally, he noted that the accumulation of BTC by large holders, or “whales,” shows strong confidence in its long-term potential.
In short, Hougan’s analysis reflects a combination of institutional capital, political factors, economic policy, and blockchain activity driving bitcoin prices into the six figures, with the potential for rapid growth as soon as the regulatory environment becomes more favorable.