Bitcoin doesn’t need a dollar crash to hit $200k: Hougan

Bitwise CIO Matt Hougan stated that X does not require the US dollar to collapse for Bitcoin to become a six-figure asset class.

Bitcoin (BTC) is often hailed as a hedge against the dollar’s declining purchasing power and as a potential beneficiary of a major fiat boom.

Some advocates have suggested that the dollar must collapse for Bitcoin to reach $200,000 per BTC and beyond. But Hougan argued that this assumption is wrong for two main reasons: increasing demand for store-of-value assets and persistent government spending.

According to the Bitwise executive, these factors strengthen the faith of investors investing in Bitcoin. Hougan also argued that store-of-value markets are gaining momentum due to “governments’ misuse of currencies.”

1/ Last week a financial advisor asked me a great question over dinner:

Does the US dollar need to crash for Bitcoin to reach $200,000?

The answer is “no”. Here’s why…

— Matt Hougan (@Matt_Hougan) 29 October 2024

For example, US spending has accelerated in recent years and the country’s debt has exceeded $35 trillion. Analysts estimate that the national debt is increasing by about $1 trillion every 100 days at its current rate.

Additionally, Unlimited Funds CIO Bob Elliott cited data showing that “developed world government debt” such as US treasuries may no longer effectively serve as a rescue mechanism, potentially supporting a pro-Bitcoin outlook.

The sell-off in US bonds led to a global decline in developed world government debt.

Since US bond yields began rising following the Fed meeting in September, the dollar and gold have been rising while global bond yields have risen, indicating that the global debt spread is increasingly widening.

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— Bob Elliott (@BobEUnlimited) 29 October 2024

Hougan expects this pattern to continue, leading to more mature BTC markets, increased adoption, and higher prices for the leading cryptocurrency.

So no, the dollar does not need to collapse for Bitcoin to reach $200k. All that is needed is for Bitcoin to continue its current path of maturation as an institutional asset. But increasingly it looks like both sides of the argument will come true. That’s why Bitcoin is rising to all-time highs.

Matt Hougan, Bitwise CIO

Hougan’s remarks came on October 29, as BTC was approaching its all-time high from March. BTC increased by 5% in the last 24 hours, reaching $72,756. While technical indicators point to a potential Bitcoin breakout, historical models warn of volatility as US citizens prepare to vote in the upcoming presidential election.

24-hour BTC price chart – October 29 | Source: crypto.news