Matt Hougan, the chief investment officer at Bitwise, is sharing his insights on what could drive Bitcoin’s price to reach $100,000 and beyond. He believes that current macroeconomic trends and on-chain data indicate that Bitcoin is on the verge of significant price increases.
Hougan points out that major central banks are implementing more relaxed monetary policies just as Bitcoin’s supply is decreasing due to this year’s halving event, which cut miner rewards in half. He lists several factors that he thinks will contribute to Bitcoin’s rise, including:
Renewed interest in Bitcoin ETFs
The upcoming election
Ongoing bipartisan agreements leading to large deficits
Economic stimulus measures in China
Global interest rate cuts from central banks like the Fed and ECB
The impact of the halving on supply
Accumulation by large investors, or “whales”
Additionally, Hougan notes that Bitcoin ETFs have seen impressive inflows, surpassing $20 billion this year alone. This performance is particularly noteworthy when compared to gold ETFs, which took five years to reach similar levels of investment.
Bloomberg’s senior ETF analyst, Erich Balchunas, emphasizes the significance of these inflows, highlighting that Bitcoin ETFs have achieved this milestone much faster than their gold counterparts, marking a pivotal moment in the ETF landscape.
