Bitcoin Can Reach $200,000 Without US Dollar Decline, Says Bitwise CIO
Matt Hougan, Chief Investment Officer of Bitwise Asset Management, addressed whether the US dollar must collapse for Bitcoin to reach $200,000 per coin. His analysis indicates that Bitcoin's price increase is linked to its maturation as a store-of-value asset and global demand for such assets, rather than a decline in the US dollar's value.
Bitcoin Can Reach $200,000 Without US Dollar Collapse
In a series of posts on X, Hougan responded to a financial advisor's inquiry about the necessity of a US dollar collapse for Bitcoin to achieve $200,000. He stated, "The answer is 'no.' Here's why."
Hougan outlined two key factors influencing Bitcoin's potential valuation: First, Bitcoin must establish itself as a new 'store of value' asset. Currently, its market capitalization is about 7% of gold's $18 trillion market. If it matures to 50% of gold's size, each Bitcoin could exceed $400,000.
Second, government mismanagement of fiat currencies can drive demand for 'store of value' assets. If this market triples and Bitcoin retains its 7% market share, each Bitcoin may be valued over $200,000.
He noted that these factors are independent but can amplify each other. If Bitcoin matures and the store-of-value market doubles, valuations could rapidly reach seven figures. Hougan believes this scenario is likely to occur.
Directly addressing the original question, he confirmed that a dollar collapse is not necessary for Bitcoin to hit $200,000; continued maturation as an institutional asset is sufficient. Both BTC's growth and potential fiat currency mismanagement are increasingly likely to happen concurrently, contributing to Bitcoin's surge toward all-time highs.
Kevin Brent Cook, a user on X, added context by explaining that the steady inflation driven by deficit spending leads to more currency chasing assets, negating the need for a dollar collapse. Hougan agreed with this perspective.
At press time, BTC was trading at $72,445, reflecting a 23% increase over the last 20 days.
