Exclusive Insights from Matt Hougan of Bitwise Asset Management
In a revealing interview with Yahoo Finance, Matt Hougan, the Chief Investment Officer at Bitwise Asset Management, shared his optimistic projection for Bitcoin, anticipating a substantial increase in its price by the end of 2025. Hougan confidently stated, “We expect Bitcoin to be up above $200,000 by this time next year.” He credited this prediction to three major demand drivers: exchange-traded funds (ETFs), corporate investments, and governmental acquisitions.
Hougan detailed, “There are ETFs that are vacuuming up Bitcoin, public companies like MicroStrategy are accumulating Bitcoin, and now we’re seeing discussions about governments investing in Bitcoin. It ultimately boils down to supply and demand—there’s too much demand and not enough supply, which drives the price higher.”
When questioned about the sustainability of such demand, Hougan stressed the gradual recognition among various investor segments of Bitcoin’s value proposition. “People just wake up to Bitcoin at different paces. We’ve seen retail investors engage first, followed by companies and financial advisors, and now institutions are recognizing that Bitcoin belongs in a diversified portfolio,” he explained.
Bitcoin as a Global Macro Asset
“Bitcoin is now a global macro asset worth a few trillion dollars, and virtually every investor should have some exposure. We still have a large number of investors to go, which is why I believe we’re still early in this journey. We have many quarters to go,” Hougan added, emphasizing the long-term potential and widespread acceptance of Bitcoin in global markets.
Potential Impact of US Governmental Bitcoin Purchases
How High Can Price Go If The US Buys Bitcoin?
A crucial element of Hougan’s forecast involves the possible creation of a US Strategic Bitcoin Reserve (SBR). Addressing this, Hougan remarked, “If we do get a Bitcoin strategic reserve where the government is buying Bitcoin, as proposed in Senator Lummis’ bill for the government to purchase a million Bitcoin, $200,000 Bitcoin is going to be looking quaint. You’re going to be looking at three, four, $500,000 Bitcoin. It’s just too big a story because governments all around the world would have to do it.”
Initially skeptical about the suggestion to establish an SBR, Hougan admitted, “But over the months, it hasn’t gone away. In fact, we continue to see leaders in the Trump Administration suggest that they’re open to it.” Although Hougan believes the odds of the US government buying Bitcoin are less than 50%, he noted, “It’s not zero. If it happens or if we start to see it happening in other countries, you’re going to see a rip up in Bitcoin that will make 2024 look pretty docile in comparison.”
The Role of Institutional Platforms in Bitcoin’s Future
Hougan also highlighted the importance of institutional platforms, specifically naming Coinbase as a potential major beneficiary in the evolving crypto landscape. “Coinbase is currently about half the size of Charles Schwab, and we believe it could surpass Schwab in brokerage size,” he noted.
“Coinbase hasn’t had major competitors bubbling up to challenge it; it’s sort of had a degree of regulatory capture, if you can believe it. As a result, it’s been able to sustain its high margins in brokerages and then layer on things like stablecoins. It’ll also help if it gets into the S&P 500; you see institutions buying it broadly. I think it’s a really unique situation driven by the fact that there was so much regulatory uncertainty—it cleared the competitive fat path and now it’s going to reap those rewards and build a really, you know, maybe an unsalable position leading this industry in the US.”
Looking toward the broader market, Hougan anticipated an influx of crypto-related companies entering public markets. “We can expect firms like Kraken, Anchorage, and Chainalysis to go public, further normalizing the industry,” he stated. “This influx will lead to increased Wall Street coverage and institutional investment, setting the stage for a robust IPO window in 2025.”
Potential Risks and Market Challenges
Despite the optimistic outlook, Hougan acknowledged potential risks that could impede Bitcoin’s growth. “The biggest risk is that politicians don’t deliver on their promises—if we don’t achieve regulatory clarity or fail to establish a strategic reserve, the expected bull market might not materialize,” he cautioned. “Regulatory and political factors are crucial drivers for crypto in 2025, and any setbacks in these areas could pose significant challenges.”
As of the time of the interview, Bitcoin was trading at $104,212, reflecting the dynamic nature of the cryptocurrency market.
