According to a report on December 19 from Cailian Press, Matt Hogen, Chief Investment Officer (CIO) of Bitwise, the largest cryptocurrency fund management company in the U.S., recently predicted that if the U.S. establishes a national Bitcoin reserve, the price of Bitcoin could soar to $500,000.
This means Bitcoin is expected to rise nearly 400% from its current price. According to data from cryptocurrency news site Coindesk, the current price of Bitcoin is $100,475.
After Federal Reserve Chairman Powell stated on Wednesday that the Fed does not intend to hold digital currencies and hinted at a more cautious approach to interest rate cuts next year, the price of Bitcoin plummeted, falling nearly 5% in the past 24 hours. Earlier this week, the cryptocurrency briefly hit a historic high of over $108,000.
Hogen stated that the U.S. purchasing Bitcoin will drive more countries to buy cryptocurrencies.
“If we really establish a strategic Bitcoin reserve, and the government buys Bitcoin... $200,000 for Bitcoin seems somewhat conservative. You will see Bitcoin at $300,000, $400,000, $500,000. This is a big event because governments around the world will do this (buy Bitcoin),” said Hogen.
Hogen stated that when Trump first proposed the idea of establishing a national Bitcoin reserve during the campaign, he was skeptical. But he noted that the idea “has not disappeared,” and Wyoming Senator Cynthia Lummis recently proposed a new cryptocurrency bill, with more people within the Trump administration indicating an open attitude toward the idea of establishing a strategic Bitcoin reserve. Trump also hinted again at establishing a Bitcoin reserve during an interview at the New York Stock Exchange last week.
“I still believe, you know, maybe the possibility of this (establishing a national Bitcoin reserve) is less than 50%, but it’s not zero,” he added. “Again, if that happens, or we start to see it happening in other countries, you will see Bitcoin surge, and by comparison, the rise in 2024 will seem quite moderate.
Since the U.S. presidential election, Bitcoin has risen 55%, and it has increased by over 140% this year.
Putting aside the strategic Bitcoin reserve, Hogen stated that with continued rising demand from investors, Bitcoin is expected to climb to $200,000 over the next year.
He believes Bitcoin has three 'unstoppable' sources of demand, namely ETFs, Microstrategy (the publicly traded company holding the most Bitcoin globally), and various governments that may become Bitcoin buyers.
“Ultimately, it depends on supply and demand. If demand is too high and supply is insufficient, then I think the price of Bitcoin will be higher in 2025,” he added.
As Trump’s second term approaches, Wall Street's optimism about cryptocurrencies is rising.
Standard Chartered Bank, which accurately predicted Bitcoin's rise to $100,000 this year, also forecasted that by the end of 2025, the price of Bitcoin will reach $200,000, with some bolder bulls predicting Bitcoin will rise to $500,000. Cryptocurrency lobbyist and Digital Chamber CEO Perianne Boring even boldly claimed that Bitcoin will break $800,000 next year.