The largest cryptocurrency fund management company in the U.S. predicts that establishing a national Bitcoin reserve could cause the price of this cryptocurrency to soar to as much as $500,000.
Matt Hougan, Chief Investment Officer of Bitwise Asset Management, stated that if the U.S. creates a national Bitcoin reserve, he expects Bitcoin could reach $500,000, which means there is a 380% upside from the current price. Hougan indicated that the U.S. purchasing Bitcoin would encourage more countries to buy this cryptocurrency.
Hougan said, 'If a strategic Bitcoin reserve is really established and the government starts buying Bitcoin, then a $200,000 Bitcoin will look very outdated. You will see $300,000, $400,000, or even $500,000 Bitcoin. This is a big story because governments around the world will have to do this.'
Hougan mentioned that when Trump first proposed the idea of creating a national Bitcoin reserve during his campaign, he was skeptical. However, he pointed out that Trump's idea 'has not disappeared' and noted the new cryptocurrency legislation proposed by Wyoming Senator Cynthia Lummis, as well as an increasing number of leaders within the Trump administration expressing an open attitude toward a strategic Bitcoin reserve. Trump also hinted at the possibility of this reserve during an interview at the New York Stock Exchange last week.
He added, 'I still believe that while the likelihood of the U.S. creating a national Bitcoin reserve is less than 50%, it's not 0%. If it happens, or we start to see other countries doing the same, you will see a surge in Bitcoin that will make the 2024 market look quite moderate.'
Since the U.S. presidential election, Bitcoin has risen by 55%, and so far this year, it has increased by over 140%.
In addition to the outlook related to Bitcoin's strategic reserves, Hougan also stated that as investor demand continues to grow, he expects Bitcoin to rise to $200,000 within the next year.
He pointed out three 'unstoppable' sources of demand for Bitcoin, namely ETFs, Microstrategy, and the government itself potentially becoming a Bitcoin buyer.
He added, 'It ultimately comes down to supply and demand. Too much demand, not enough supply, so I believe the price in 2025 will be higher.'
Wall Street's attitude towards cryptocurrency is becoming increasingly optimistic, especially with Trump's second term approaching. Standard Chartered Bank accurately predicted that Bitcoin would rise to $100,000 this year, and now predicts that Bitcoin will reach $200,000 by the end of 2025, while other bullish forecasts suggest the token's price could rise as high as $500,000.
Article reposted from: Jinshi Data
