After Donald Trump, who supports cryptocurrency, was elected president of the United States, the price of Bitcoin has been soaring, hitting new highs one after another. Bitwise Chief Investment Officer Matt Hougan further put forward a bold view, believing that "Bitcoin is expected to soar to $500,000 in the future." He also emphasized that this target price will become a key watershed for "Bitcoin's maturity." Now, Bitcoin Still in the "early stages" of this journey.
According to CoinGecko market data, after Bitcoin broke through the US$90,000 mark yesterday (13th) night, it seemed to have opened up the "Rent and Governor" and continued to rush upward, reaching a maximum of US$93,477, setting a new high record. At the time of writing, Bitcoin’s gains have subdued and are trading at $91,034.
Bitwise chief investment officer Matt Hougan analyzed to clients on Tuesday:
Bitcoin’s rise is fast and furious. Although the market may take a short break and pull back briefly, the goal of $100,000 is actually within reach.
Although the cryptocurrency market is no longer as immature as a newborn, as long as Bitcoin does not break through $500,000, the market is still in its early stages.
Why is $500,000 not a fantasy?
Although there is no guarantee that Bitcoin will one day rise to $500,000, Matt Hougan said that only by reaching this target price can Bitcoin truly enter the "mature stage."
He believes that as governments continue to borrow money and currency depreciation, the market's demand for "value-preserving assets" such as gold will only increase, and Bitcoin is gradually becoming an alternative to gold.
Matt Hougan further explained that gold, as a "mature asset", has long been the "standard choice" for central banks and investment institutions in various countries. On the other hand, the popularity of Bitcoin is far less than this. Whenever pension funds and large funds invest in Bitcoin, they still It will become the focus of the market. The U.S. Department of Labor even warned retirement funds not to include Bitcoin casually. When a large hedge fund publicly expresses its support for cryptocurrency, the market is always excited.
Matt Hougan added that although Bitcoin has made many breakthroughs, such as the craze caused by Bitcoin spot ETFs and the emergence of more and more politicians supporting cryptocurrency, it needs to achieve the same "dominance" as gold and become the central bank, Assets that are commonly held by institutions still have a long way to go.
The logic behind $500,000
Matt Hougan said that the price of "$500,000" is based on the current market size of "valued assets" of approximately $20 trillion.
The "stored asset" market is currently dominated by gold, which amounts to $18 trillion, while Bitcoin is about $2 trillion. He believes that if Bitcoin is to occupy half of this market, the price of the currency must rise to at least $500,000 to reach the target.
Matt Hougan pointed out that to reach this price, the key is that institutions that currently hold large amounts of gold assets must also allocate Bitcoin in the future. And the central bank’s role in this equation remains insufficient.
According to him, governments currently hold about 20% of the world’s gold reserves, but less than 2% of Bitcoin (total supply). For Bitcoin to move toward $500,000, this gap must close.
Matt Hougan further mentioned that Wyoming Senator Cynthia Lummis advocated that the United States establish a “national Bitcoin reserve” with the goal of using government funds to purchase $80 billion in Bitcoin. This is the most typical case.
He believes that if this plan is finally implemented, $500,000 in Bitcoin will no longer be a fantasy.
"Super crazy! Before Bitcoin reaches 100,000, he shouts "Look at 500,000 US dollars". What is the logic behind it? "This article was first published on (Block Guest).
