Expert Predicts Bitcoin Price Could Reach $500,000 with US Reserve
In an exclusive interview with Yahoo Finance, Matt Hougan, Chief Investment Officer at Bitwise Asset Management, projected Bitcoin's price to exceed $200,000 by the end of 2025. He attributes this forecast to three main demand drivers: exchange-traded funds (ETFs), corporate investments, and governmental acquisitions.
Hougan explained that ETFs are accumulating Bitcoin, public companies like MicroStrategy are buying it, and discussions about government investments are emerging. This imbalance between high demand and limited supply is expected to increase prices.
Regarding the sustainability of demand, Hougan noted that different investor segments are gradually recognizing Bitcoin's value. Retail investors were first, followed by corporations, financial advisors, and now institutions are acknowledging Bitcoin's role in diversified portfolios.
How High Can Price Go If The US Buys Bitcoin?
Hougan's forecast also considers the potential establishment of a US Strategic Bitcoin Reserve (SBR). He stated that if the government purchases Bitcoin as proposed in Senator Lummis' bill for a million Bitcoin, the price could reach $300,000 to $500,000. He acknowledged initial skepticism about this idea but noted increasing interest from political leaders.
He believes the likelihood of the US government buying Bitcoin is below 50%, but not impossible. If such actions occur globally, significant price increases would follow.
Hougan highlighted Coinbase as a key player in the evolving crypto landscape, suggesting it could surpass Charles Schwab in brokerage size due to its regulatory advantages and sustained high margins.
Looking forward, he anticipates more crypto-related companies like Kraken and Chainalysis entering public markets, which will normalize the industry and enhance institutional investment, leading to a strong IPO market in 2025.
Despite the positive outlook, Hougan warned that political and regulatory uncertainties could hinder Bitcoin's growth. Without clarity or the establishment of a strategic reserve, the anticipated bull market might not materialize. Regulatory factors are critical for crypto's trajectory in 2025.
At press time, Bitcoin traded at $104,212.
