Bitcoin’s path to $200,000 does not depend on the demise of the dollar, says the CIO for Bits

Bitcoin’s path to $200,000 does not require a collapse of the US dollar.

Instead, Bitwise Chief Investment Officer Matt Hougan believes there are two key factors that will support BTC’s upside potential, offering a compelling outlook on its future as an institutional asset.

Institutional maturity

In response to a question about the impact of the US dollar on bitcoin’s trajectory, Hougan explained that investing in it involves making two concurrent bets: one that it will cement its status as a new “store of value” asset, and one other that governments will abuse fiat currencies. , thus increasing the demand for alternatives.

He noted that BTC currently represents about 7% of the market capitalization of gold, valued at $18 trillion. If bitcoin matures to capture 50% of gold’s market share, its value could rise to $400,000.

On the other hand, if the global “store of value” market expands and bitcoin maintains its current market share, each BTC could still reach $200,000 if that market triples.

The CIO of Bitwise detailed that these arguments are interconnected; If bitcoin continues to mature and the store of value market doubles, the potential price could reach seven figures.

He concluded that while the collapse of the US dollar is not necessary for bitcoin to reach $200,000, its maturation as an institutional asset is crucial. With mounting evidence supporting both arguments, Hougan suggests that bitcoin’s trajectory is on the upswing, propelling it to new all-time highs.

“So, no, the dollar doesn’t have to collapse for bitcoin to hit $200,000. All you need is bitcoin to continue on its current path of maturing as an institutional asset. But increasingly it looks like both parts of the argument will come true. That’s why bitcoin is rising to all-time highs.”

Gold shines amid inflation worries, election uncertainty

While bitcoin’s trajectory toward $200,000 is largely dependent on its maturation as a “store of value” asset, similar market forces are also driving renewed interest in traditional safe-haven assets like gold .

Investor concerns about inflation, international tensions and economic instability are driving a renewed focus on gold as a safe-haven asset that soared to a new peak near $2,800. The final stretch of the US presidential election, with Republican Donald Trump and Democrat Kamala Harris with contrasting economic agendas, is also widening gold’s appeal as a hedge against uncertainty.

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