What happened?
Bitwise CIO Matt Hougan has predicted a potential rise of Bitcoin to $1.3 million by 2035, based on an institutional model considering government debt, gold’s role as a store of value, and the influx of Wall Street capital via exchange-traded funds (ETFs). He suggests Bitcoin has transitioned from a fringe asset to a valid global portfolio component, similar to equities, bonds, and real estate.
Who does this affect?
This outlook will directly impact existing and potential Bitcoin investors, particularly traditional investors who’ve seen barriers to entry removed with the launch of spot ETFs. Regulators who were earlier resistant to Bitcoin are now evolving clearer rules for crypto adoption. Essentially, anyone interested in cryptocurrencies, economic trends, or investment portfolios should take note of these predictions.
Why does this matter?
The potential rise of Bitcoin to such heights is significant as it would vastly reshape the cryptocurrency market and potentially the broader financial markets. If Bitcoin managed to capture even 25% of gold’s $14 trillion market, it could fundamentally reprice the cryptocurrency. In addition, the uptick in institutional acceptance of Bitcoin represents a key shift in the perception and use of cryptocurrency. This opens the door for more widespread adoption, possibly influencing economic policy concerning crypto assets.