Bitcoin has the potential to reach $500,000 if governments consider strategic reserves due to increasing demand from ETFs, corporations, and institutions, surpassing the limited supply and driving prices higher. Matt Hougan, the chief investment officer at Bitwise Asset Management, expressed his optimistic outlook for bitcoin during an interview on Yahoo Finance. Bitwise predicted that bitcoin could exceed $200,000 by the end of next year, attributing this surge to strong demand drivers. Hougan stated that there are three unstoppable sources of demand in the market. He emphasized that ETFs, companies like Microstrategy, and even governments are increasingly acquiring bitcoin, leading to higher prices as the supply remains limited. According to him, the price of bitcoin will continue to rise in 2025 due to the high demand and limited supply. Hougan pointed out that interest in bitcoin is growing at different speeds across various sectors. He believes that bitcoin has become a global macro asset and that every investor should have some exposure to it. He further explained that retail investors were the first to embrace bitcoin, followed by companies and financial advisors, and now institutional players are starting to recognize its permanence and portfolio potential. Hougan suggested that government involvement could drive prices even higher, referring to a proposal by Senator Cynthia Lummis advocating for the US government to purchase one million bitcoins. He noted that if such a bitcoin strategic reserve were to exist, a price of $200,000 for bitcoin would seem insignificant, and it could potentially reach $300,000 or even $500,000. Although initially skeptical, Hougan acknowledged the growing interest in bitcoin from global leaders and former US officials, stating that the possibility of government involvement is real and could significantly propel bitcoin’s value.
