Bitwise Chief Investment Officer, Matt Hougan, stated that the price of Bitcoin could hit $500,000 following the proposed launch of a strategic Bitcoin reserve in the United States.
Matt Hougan’s projections align with that of various analysts expecting a pump in Bitcoin price if the strategic Bitcoin reserve is launched.
Speaking as a guest on Yahoo Finance’s Market Domination, Matt Hougan explained the reasons behind his projections while assessing the current market.
Matt explained that Bitcoin had an incredible run last year and three standout factors are key to a rising demand for Bitcoin resulting in its continued price increase.
He stated that the Bitcoin ETFs, Public companies like Microstrategy, and Government Jurisdictions are major drivers of demand for Bitcoin ramping up its price.
“At the end of the day, it comes down to supply and demand. There is too much demand and not enough supply so I think the price goes higher in 2025″ Matt Stated.
Is Bitcoin Demand Sustainable?
On the question of the sustainability of the demand for Bitcoin over a long period, Matt explained that the sustained demand for Bitcoin is maintained by various groups jumping on the Bitcoin bandwagon at different time frames.
The demand for Bitcoin has been maintained by different classes of investors turning to Bitcoin at different price intervals according to their educational grasp of the technology.
Retail investors were the first to come on board followed by companies and Financial advisors. At the moment traditional financial institutions like Blackrock and Fidelity are coming on board. The entry of these various classes of investors as bitcoin price goes higher has helped sustain its demand.
$500,000 BTC price to follow Bitcoin Strategic Reserve
The possibility of a Bitcoin strategic reserve in the United States can pump the price of Bitcoin to $500,000 according to Hougan.
He believes that if the Bill sponsored by Senator Lumis allows the Government to Buy Bitcoin passes. Other Countries would join in doing it and that will send BTC prices to astronomical highs.
Matt Hougan earlier predicted that the Ethereum ETFs will pull in around $15 billion in its first 18 months. The ETFs haven’t performed as projected.
Bitcoin at the time of the report is exchanging hands for $96,634 up 4.1% in the last 14 days.
