According to Hougan, there are three major factors that he believes could drive the growth.
The future of Bitcoin BTC $70 214 24h volatility: 0.2% Market cap: $1.40 T Vol. 24h: $42.41 B is looking bright according to Matt Hougan, Global Head of Research for Bitwise Asset Management. This follows after the renowned crypto expert recently shared his projection of the prized asset, saying it could reach an astonishing $200,000 by 2025.
According to Hougan, his prediction may feel like an overreach, but there are three major factors that he believes could drive the growth. His analysis bordered on the upcoming US elections, sidelined investment capital, and the long-term potential of Bitcoin ETFs.
Matt Hougan Shares Key Factors to Drive Bitcoin Price to $200,000
Hougan mentioned that the 2024 US elections will play a major part in Bitcoin’s remarkable rise. He pointed at the current political landscape and suggested that nothing can go wrong for Bitcoin regardless of whoever emerges as president. That is, whether a pro-crypto individual like Donald Trump becomes the next president or a neutral like Kamala Harris emerges. At least, there will be no negative impact on Bitcoin, he noted.
Speaking of Trump’s current lead in the polls, Hougan opined that investors may already be looking at how a crypto-friendly administration would boost the crypto market.
Another key factor that Hougan believes may drive BTC growth is the fact that many investors are still lying in wait. This means that a lot of capital has yet to flow into the crypto market.
He noted that, as Bitcoin rises, sidelined investors would be encouraged to jump in on the trend. This is due to the fear of missing out on the huge opportunity for gains.
Lastly, Hougan says his bullish prediction also hinges on the growth of Bitcoin ETFs. Although Bitcoin ETFs are still in their early stages, their performance has already exceeded expectations.
Hougan, who previously served as CEO of ETF.com, highlighted the growth potential of ETFs, which have already seen over $20 billion inflow in less than a year of launch. He also added that the expectations are more, saying:
“The thing that crypto should realize about ETFs is that they are multi-year stories. If you look back at the Gold ETF, which launched the most successful ETF launch of all time…I think the same thing is going to happen for Bitcoin ETFs.”
As Hougan noted, institutional interest in Bitcoin has only just begun. So, once more clarity begins to emerge within regulatory frameworks, it is only a matter of time before more investors begin to troop into the market.
At the time of writing, Bitcoin price has already surpassed $67,000, showing strong momentum ahead of the elections.
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