Bitwise Predicts Bitcoin to Reach $200,000 by 2026

Ryan Rasmussen, Head of Research at Bitwise, discussed Bitcoin's prospects on Yahoo Finance, emphasizing a potential price target of $200,000 by 2026. He described the current sell-off as part of a maturing market rather than a trend break.

Market Dynamics

Rasmussen suggests we are near a market bottom, attributing the downturn to risk-off conditions and ETF dynamics.
He identifies increased liquidity due to institutional investors but notes heightened market volatility.
Hedge funds' basis trades contribute to market choppiness, expected to stabilize over time.

Volatility and Demand

Short-term volatility remains high, but long-term trends show a decline.
New buyers, including wealth managers and financial advisors, are adding stability by integrating Bitcoin into portfolios.
Corporate treasury demand has decreased recently, linked to October's sell-off.

Bitcoin's Future

Despite recent price drops, Rasmussen maintains Bitcoin will appreciate medium-term.
Institutional adoption is gradual; notable entities like Harvard have started investing.
While macro factors influence Bitcoin, correlations with equities are decreasing, favoring low-rate environments.
The forecast for $200,000 by 2026 hinges on systemic demand growth from various institutional sources.

At the time of reporting, BTC traded at $91,205.

Bitcoin price