Will Bitcoin’s Limited Supply Drive Prices to $200,000? Bitwise CIO Weighs In
Matt Hougan, Chief Investment Officer at Bitwise, is optimistic about Bitcoin's future, predicting the price could soar to $100,000 or even $200,000 soon due to rising demand coupled with limited supply.
In a recent interview, Hougan noted that Bitcoin’s impressive surge of nearly 50% this year can be attributed to the growing interest in spot Bitcoin ETFs. He described this period as Bitcoin’s “IPO moment,” emphasizing that we are entering a new phase of price discovery where significant increases are possible.
As Bitcoin hovers around $62,000, he pointed out that interest in Bitcoin ETFs has surged among various types of investors, including retail traders, hedge funds, and financial advisors, with expectations for further institutional interest in the near future. He mentioned a forthcoming meeting with a leading institutional advisor regarding their ETF, hinting at a potential influx of institutional capital that could drive prices higher.
READ MORE: BlackRock Increases Bitcoin Holdings Amid Market Recovery, Signaling Potential Opportunity
Hougan highlighted a substantial supply-demand imbalance, noting that ETFs purchased about 30,000 Bitcoins within a week, while miners generated less than 3,000 coins during that same timeframe. He also referenced the upcoming Bitcoin halving event, which he believes will tighten supply further and contribute to upward price momentum.
He concluded that Bitcoin’s current dynamics are primarily driven by supply and demand factors, and if conditions remain favorable, prices could exceed $200,000. Additionally, Bitwise is exploring new opportunities in cryptocurrency ETFs and may launch an Ethereum ETF by year-end.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
