Key Factors Driving Bitcoin Price Rally to $200,000 by Year-End According to Bitwise CIO

Matt Hougan, Bitwise CIO, forecasts a potential rise in Bitcoin’s price to $200,000 due to higher demand than supply. He notes that structural Bitcoin demand significantly outpaces new supply, necessitating existing holders to sell. Anticipating further demand from governments, corporations, and institutional investors, Hougan expects a substantial influx of capital in Bitcoin, currently priced at $83,755.

Matt Hougan, the Chief Investment Officer (CIO) of Bitwise, asserts that Bitcoin (BTC) may experience significant price gains due to the current supply-demand dynamics. In a recent interview on the Unchained podcast, he highlighted that the demand for Bitcoin far exceeds its supply, potentially driving its price to approximately $200,000, which represents a 139% increase from its current value.

Hougan pointed out that the new supply of Bitcoin totals 165,000, while significant acquisitions over the past year included 500,000 Bitcoins by exchange-traded funds (ETFs) and 350,000 by corporations. This discrepancy indicates that there is a greater structural demand for Bitcoin compared to its new supply, necessitating that current owners sell to meet the demand.

He anticipates that Bitcoin could see a price surge to $200,000 as the market stabilises, and existing holders begin to sell at significant price points. He articulated that the price level will depend on buyer psychology, often gravitating toward round numbers, hence predicting a strong likelihood of reaching this target price.

Looking ahead, Hougan expects substantial demand growth from various sectors. He foresees governments potentially acquiring hundreds of thousands of Bitcoins, alongside increased corporate interest, with hundreds of companies likely to invest in Bitcoin over the coming year. Additionally, institutional investors are recognising Bitcoin’s relevance in global capital markets, suggesting a significant influx of investment is imminent.

Currently, Bitcoin is trading around $83,755, indicating a promising trajectory if Hougan’s projections hold true. \xa0 \xa0

Investors are encouraged to conduct thorough due diligence before engaging with high-risk investments like Bitcoin and other cryptocurrencies, given the unpredictable nature of digital asset markets.