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In an exclusive interview<\/a> with Yahoo Finance, Matt Hougan, Chief Investment Officer at Bitwise Asset Management, shared his bullish outlook on Bitcoin, projecting significant price appreciation by the end of 2025. \u201cWe expect Bitcoin to be up above $200,000 by this time next year,\u201d Hougan stated, attributing this forecast to three primary sources of demand: exchange-traded funds (ETFs)<\/a>, corporate investments, and governmental acquisitions.<\/p>\n Hougan elaborated, \u201cThere are ETFs that are vacuuming up Bitcoin, public companies like MicroStrategy are accumulating Bitcoin, and now we\u2019re seeing discussions about governments investing in Bitcoin. It ultimately boils down to supply and demand\u2014there\u2019s too much demand and not enough supply, which drives the price higher.\u201d<\/p>\n When probed about the sustainability of such demand, Hougan emphasized the gradual awakening of different investor segments to Bitcoin\u2019s value proposition. \u201cPeople just wake up to Bitcoin at different paces. We\u2019ve seen retail investors engage first, followed by companies and financial advisors, and now institutions are recognizing that Bitcoin belongs in a diversified portfolio,\u201d he explained.<\/p>\n \u201cBitcoin 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\u2019re still early in this journey. We have many quarters to go,\u201d he added.<\/p>\n A pivotal aspect of Hougan\u2019s forecast hinges on the potential establishment of a US Strategic Bitcoin Reserve (SBR). Addressing this, Hougan remarked, \u201cIf we do get a Bitcoin strategic reserve where the government is buying Bitcoin, as proposed in Senator Lummis\u2019 bill for the government to purchase a million Bitcoin, $200,000 Bitcoin is going to be looking quaint. You\u2019re going to be looking at three four $500,000 Bitcoin. It\u2019s just too big a story because governments all around the world would have to do it.\u201d<\/p>\n Hougan admitted that he was first skeptical about Trump suggestions to establish a SBR<\/a>. \u201cBut over the months, it hasn\u2019t gone away in fact we continue to see leaders in the Trump Administration suggest that they\u2019re open to it,\u201d Hougan remarked. The Bitcoin CIO still thinks that the odds of the US government buying Bitcoin is less than 50%, but \u201cit\u2019s not zero,\u201d he added. \u201cIf it happens or if we start to see it happening in other countries, you\u2019re going to see a rip up in Bitcoin that will make 2024 look pretty docel in comparison.\u201d<\/p>\n Hougan also highlighted the role of institutional platforms, specifically citing Coinbase as a potential major beneficiary in the evolving crypto landscape. \u201cCoinbase<\/a> is currently about half the size of Charles Schwab, and we believe it could surpass Schwab in brokerage size,\u201d he noted.<\/p>\n \u201cCoinbase hasn\u2019t had major competitors bubbling up to challenge it; it\u2019s sort of had a degree of regulatory capture, if you can believe it. As a result, it\u2019s been able to sustain its high margins in brokerages and then layer on things like stablecoins. [..,.] It\u2019ll also help if it gets into the S&P 500; you see institutions buying it broadly. I think it\u2019s a really unique situation driven by the fact that there was so much regulatory uncertainty\u2014it cleared the competitive fat path and now it\u2019s going to reap those rewards and build a really, you know, maybe an unsalable position leading this industry in the US.\u201d<\/p>\n Looking ahead to the broader market, Hougan anticipated an influx of crypto-related companies entering public markets. \u201cWe can expect firms like Kraken, Anchorage, and Chainalysis to go public, further normalizing the industry,\u201d he stated. \u201cThis influx will lead to increased Wall Street coverage and institutional investment, setting the stage for a robust IPO window in 2025.\u201d<\/p>\n Despite the optimistic outlook, Hougan acknowledged potential risks that could impede Bitcoin\u2019s growth. \u201cThe biggest risk is that politicians don\u2019t deliver on their promises\u2014if we don\u2019t achieve regulatory clarity or fail to establish a strategic reserve, the expected bull market<\/a> might not materialize,\u201d he cautioned. \u201cRegulatory and political factors are crucial drivers for crypto in 2025, and any setbacks in these areas could pose significant challenges.\u201d<\/p>\nRelated Reading<\/span><\/h2>\n<\/p>\n
How High Can Price Go If The US Buys Bitcoin?<\/h2>\n
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