Matt Hougan, the Chief Investment Officer (CIO) of the cryptocurrency asset management company Bitwise, is pointing out a potentially bullish factor for Bitcoin (BTC).
During a recent appearance on the Unchained podcast, Hougan mentioned that the demand for Bitcoin currently exceeds its supply, which he believes will push the price of the leading cryptocurrency to approximately $200,000, representing a 139% increase from its present level.
“The new supply of Bitcoin stands at 165,000 coins. Last year, exchange-traded funds (ETFs) purchased half a million Bitcoin, while corporations acquired 350,000 Bitcoin…
…This indicates a significantly higher structural demand for Bitcoin compared to new supply. Consequently, existing holders must sell. We observed existing holders sell at $72,000 from March to November before the price surged to $100,000.
The reason I project $200,000 and not just $162,351 is that I believe this is the next price point where existing holders will begin selling. They are behavioral-driven individuals, and it’s an appealing round figure.
Therefore, I think that once the macro market stabilizes, this fundamental mismatch between demand and supply will drive Bitcoin’s price higher and higher until we see existing holders parting with their Bitcoin. Perhaps they would let go at $150,000, but I’m uncertain. I genuinely think it could reach $200,000 by the end of this year.”
Regarding the future sources of demand for Bitcoin, the Bitwise CIO stated,
“I anticipate that governments will acquire hundreds of thousands of Bitcoin in the coming year. I predict that corporations, which bought 350,000 Bitcoin last year, will purchase even more this year. Furthermore, I believe hundreds of companies will participate.
Additionally, institutional investors are beginning to realize that Bitcoin has become integrated into the global capital markets. If you are not holding at least 1% Bitcoin, you are essentially shorting against the global capital market benchmark. Therefore, I believe there are hundreds of billions of dollars that must flow into Bitcoin just to align with the market averages.”
As of this writing, Bitcoin is trading at $83,755.
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Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors should conduct their own research before making any high-risk investments in Bitcoin, cryptocurrency, or digital assets. Please be advised that your transactions and trades are at your own risk, and any losses incurred are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Note that The Daily Hodl participates in affiliate marketing.
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