Hougan predicts 200k without relying on a dollar crash
Bitwise CIO Matt Hougan recently expressed his opinion that Bitcoin does not rely on a crash of the U.S. dollar to become a valuable asset class in the six-figure range. While Bitcoin has been seen as a hedge against the declining purchasing power of the dollar and a potential beneficiary of a fiat collapse, Hougan argued that this assumption is incorrect due to two main reasons: the increasing demand for store-of-value assets and ongoing government spending.
Hougan believes that these factors strengthen investor confidence in Bitcoin. He further emphasized that the market for store-of-value assets has gained momentum as a result of governments misusing their currencies. As an example, he pointed out that U.S. spending has been escalating in recent years, leading to a national debt exceeding $35 trillion. Analysts estimate that the debt is growing at a rate of $1 trillion every 100 days.
Furthermore, Bob Elliott, the CIO of Unlimited Funds, highlighted data suggesting that traditional forms of sovereign debt, such as U.S. Treasuries, may no longer serve as effective bailout mechanisms. This, in turn, could support a positive outlook for Bitcoin.
Hougan expects this trend to continue, resulting in more mature Bitcoin markets, wider adoption, and higher prices for the leading cryptocurrency.
Hougan made these remarks on October 29, as Bitcoin approached its all-time high from March. Bitcoin experienced a 5% increase in the past 24 hours, reaching $72,756. While technical indicators indicate the possibility of a Bitcoin breakout, historical patterns indicate potential volatility as the U.S. prepares for the upcoming presidential election.
Overall, there is a growing institutional demand for Bitcoin, with crypto analytics firm CryptoQuant predicting a surge in 2024.
