The chief investment officer at Bitwise, Matt Hougan, has predicted a huge rise in the price of Bitcoin (BTC) by 2025. According to Hougan, Bitcoin will reach an all-time high and hit $200,000, all based on several key factors.
Regardless of the winner, the 2024 U.S. presidential elections could be good for Bitcoin, Hougan told Reuters. According to him, Donald Trump or a neutral stance from Kamala Harris could positively impact the cryptocurrency market, and he suggested a pro-crypto administration would.
Both scenarios are depicted as non-negative for growth prospects. Investors await more clarity on political and regulatory factors before fully committing.
Hougan thinks that if Bitcoin climbs, more people will jump in sooner rather than later. A price run-up could quickly attract institutional investors, boosting the market’s heat.
Hougan Predicts Bitcoin Surge Amid Investor FOMO
Hougan said the most notable holding back many institutional investors is more regulatory or market clarity. Knowing cryptocurrency’s increasing presence in institutional finance, these investors hesitate to invest.
But if Bitcoin starts to rally and hit new highs, it may spark some fear of missing out (FOMO) and get them to take action.
If it can sell its sidelined capital and market conditions are favorable, then Bitcoin’s price can hit record levels. Hougan pointed out that if the leading crypto rises past $70,000, this may spark a surge in investments.
Such momentum would fuel the market on its own, making Bitcoin’s rise a self-sustaining machine. Hougan believes that its current trajectory hints that careful investors should recalibrate their viewpoint.
However, as more investors come together, the influx of money will likely increase prices. He is bullish on his forecast because one of the key elements is this growing confidence among institutional players.
Bitcoin ETFs Could Mirror Gold’s Success Story
The Bitwise CIO also emphasized the long-term potential of Bitcoin ETFs as a significant factor in Bitcoin’s growth. However, he said Bitcoin ETFs have already entered the market.
Recent data suggest that Bitcoin ETFs have accumulated nearly 52% of assets under management (AUM) compared to Gold ETFs. Additionally, he argued that the market resembles the earlier beginning of Gold ETFs, which have since become enormously popular.
Bitcoin ETFs follow a similar path ahead. The price surge is powered by a critical driver. Because more institutional investors are starting to use Bitcoin ETFs, the influx of funds could drive the coin to $200,000 by 2025.
Hougan, who previously served as the CEO of ETF.com, is confident it can succeed because he has years of experience in the ETF market.
What makes it so interesting is the strong demand for Bitcoin ETFs, especially in the early stages, he says, highlighting the possibility of sustained growth. His optimistic outlook is backed by the growing adoption of cryptocurrency in existing financial systems.
Ethereum Set for New Highs by 2025
Hougan is also bullish on Ethereum’s future, saying he believes it has a bright future. Intriguingly, he thinks Ethereum is underpriced, being the dominant force in decentralized finance (DeFi) applications amidst competition from other blockchains.
DeFi, stablecoins, and tokenization continue to run on the leading platform — Ethereum. According to him, one reason is that Ethereum’s future is bright. It has received regulatory and technological advances that will benefit it soon.
He forecasts that Ethereum could reach new all-time highs by 2025 as things develop. While Bitcoin is still the main focus, Ethereum plays a unique role in blockchain technology and has great growth potential.
