Bitwise CEO Matt Hougan envisions a new outlook for Bitcoin, the market's leading cryptocurrency, which he believes could reach a price of $200.000 by 2025.
According to Hougan, the Bitcoin market has been completely transformed by the entry of institutional investors. The cryptocurrency's bull and bear cycles, often associated with four-year periods marked by network halvings and which had been setting the trajectory of its price, have come to an end.
In a note to investors, Hougan, CEO of Bitwise Asset Management, argued that this cyclical trend may have ended and that the cryptocurrency is now entering a a whole new panoramaHis statements are generating great expectations by suggesting that the price of the world's leading cryptocurrency could reach the impressive figure of $200.000 by the end of 2025; a projection based on several fundamental factors that are restructuring the market.
The rise of institutional adoption: An “overlooked megatrend”
One of the pillars of Hougan's prediction is the massive entry of institutional investors into the Bitcoin market, following the launch of the cryptocurrency's ETFs in the United States. The regulatory approval of these financial instruments, which came after Grayscale's judicial victory in its case against the SEC, opened the door to this greater participation of institutions and companies.
Traditionally, retail investment has been the primary driver of BTC volatility, but the growing interest from large investors, hedge funds and asset managers is altering this dynamic. The possibility of investing in this cryptocurrency through an ETF, simplifying the process and lowering the barrier to entry, is resulting in a greater entry of more sophisticated investors, which in turn is increasing the growth potential of the cryptocurrency.
The influence of MicroStrategy
While Hougan acknowledges that regulation plays a crucial role in his long-term view of Bitcoin, he has also pointed to what Michael Saylor’s business intelligence firm MicroStrategy is doing and how the investment strategy it has used since 2020 is ushering in an often-underestimated “megatrend.”
As the United States moves towards a clearer and more favorable regulatory framework for cryptocurrencies, financial institutions will feel more confident to include BTC in their investment portfolios. Hougan believes that, in the next 12 to 18 months, “We will see hundreds of companies buying bitcoins for their treasury reserves”, which will represent a massive injection of capital that could drive the price of BTC to unprecedented levels.
Furthermore, Hougan's perspective encompasses an even more global vision, considering that by 2025, the number of countries that recognize and adopt Bitcoin could double, strengthening the cryptocurrency's position as a global digital asset.
Last year, MicroStrategy purchased around 257.000 BTC, which was more than all the bitcoins ever mined, Hougan said. Also, the company has plans to raise more than $42.000 billion to acquire more Bitcoin. “At current prices, that equates to about 2,6 years of new supply.”, Hougan said, stressing that this demand will have an unimaginable impact on the market.
More than 70 companies are willing to buy BTC
While MicroStrategy is getting all the press these days about investing in Bitcoin, it's not the only company doing so. In fact, Hougan noted that the list of public companies that own bitcoins, such as Marathon Digital, Riot Platforms and Block, as well as non-crypto companies like Tesla, Semlar Scientific and Mercado Libre, totaling 141.302 BTC, excluding MicroStrategy's holdings, which currently exceed 471.000 BTC.
The expert also highlighted that private companies are not required to disclose their Bitcoin holdings and that last year, approximately 70 companies showed interest in adding the cryptocurrency to their balance sheets, even when from an accounting perspective the asset seemed to be in decline. This led Hougan to wonder how many more might be willing to do so now, underlining the growing acceptance and adoption of Bitcoin by various corporations and the pressure that many investors and shareholders are putting on their companies to enter the BTC market, such as Microsoft, Meta and Amazon.
Beyond reputational risk: A mature and stable market
One of the main obstacles to institutional investment in Bitcoin had been the reputational risk of participating in this market. However, this has diminished significantly in recent months, and even more so after Donald Trump's election victory in the United States.
“After the election, with Washington embracing cryptocurrencies at the highest levels, it is becoming much more common – and popular – to own bitcoin”, Hougan said.
One should also not forget the fundamental change in the very nature of the Bitcoin and cryptocurrency market, which has evolved into a much more mature one in recent years.
With all this, Hougan has reiterated his belief that the price of Bitcoin will never fall to zero. His stance is based on growing institutional adoption as a key piece that supports the foundation of the cryptocurrency. The fact that large institutions are investing in Bitcoin demonstrates confidence in the digital asset and its long-term potential, and this confidence minimizes the risk of an abrupt fall. In addition, the expectation of a more favorable regulatory environment in the United States could attract billions of dollars in new investments to the sector, further consolidating Bitcoin's position as a resilient asset.
Ultimately, Hougan's vision for 2025 is not just about a high price, but about consolidating Bitcoin as a mature, stable asset that is an integral part of the global financial system.
