Bitwise CIO says Bitcoin could surge to $200K without dollar decline
Bitcoin could reach the $200,000 milestone without a decline in the dollar’s strength, suggests Matt Hougan, Chief Investment Officer at Bitwise.
Hougan outlines that two main forces are fueling Bitcoin’s potential ascent: it’s standing as a digital store of value and concerns about fiat currency inflation.
Hougan explains that Bitcoin’s role as “digital gold” remains an underexplored driver. Despite Bitcoin representing just a fraction of gold’s $18 trillion market, it could reach new heights as investors increasingly recognize it as a modern hedge.
According to Hougan, even if Bitcoin captured just 25% of gold’s market, its price could exceed $200,000.
The second driver, Hougan notes, is inflationary pressure on fiat currencies, especially with rising U.S. federal debt levels.
This financial strain could drive demand for assets like Bitcoin, viewed by some as a hedge against currency debasement.
While some analysts assume Bitcoin’s growth relies on a weakened dollar, Hougan believes the cryptocurrency has ample room to thrive independently. With the possibility of Bitcoin taking on roles beyond just value storage, such as an international settlement layer, its relevance in the financial world could expand further.
