Increased investment in “store-of-value” assets and the ongoing decline in fiat currency value could drive Bitcoin’s price into six figures without requiring a crash of the US dollar, according to Matt Hougan, Bitwise’s chief investment officer.
On Oct. 29, Hougan responded on social media platform X to a financial adviser’s question about whether Bitcoin could realistically hit $200,000 without the US dollar’s collapse.
“When you invest in Bitcoin, you’re essentially making two distinct bets,” Hougan explained. He believes that Bitcoin can solidify itself as a new store-of-value asset and that governments will continue to misuse fiat currency control. This trend, he suggests, will naturally increase demand for durable assets like BTC.
Hougan emphasized that while these two factors address the question, each factor holds independent influence over Bitcoin’s value potential.
With Bitcoin’s market capitalization around $1.4 trillion, currently 7%-8% of gold’s $18 trillion market, Hougan sees room for BTC to “mature” and eventually reach about half of gold’s valuation, which would push Bitcoin’s price to around $400,000.
He also pointed out that because governments are heavily influencing fiat currency supplies through policies like increased money printing, more investors may look to store-of-value assets to safeguard their wealth.
If Bitcoin were to retain just a 7% share relative to gold and the demand for it tripled, each BTC could be worth approximately $200,000.
“These factors multiply together,” he added, “so if Bitcoin matures and the store-of-value market doubles, you could see Bitcoin in the seven-figure range.”
The demand for store-of-value assets like gold has risen sharply due to global economic uncertainties and geopolitical tensions, with gold reaching a record high of $2,778 per ounce on Oct. 29.
Additionally, dollar devaluation is expected to remain central to the US industrial strategy, as outlined in a recent report by Financial Sense. Economists Marc Fasteau and Ian Fletcher argued that the US needs a strong industrial policy to stay competitive globally, especially with China, which would involve encouraging new technologies, protecting domestic markets, and intentionally lowering the dollar’s value.
Market analysts are optimistic about Bitcoin’s potential to reach a new all-time high, with BTC nearing its March peak on Oct. 29, when it briefly touched $73,562, based on CoinGecko data. The asset later adjusted slightly, trading at $72,392 at the time of publication.
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