Bitwise CIO Matt Hougan outlines a timeline for higher Bitcoin prices, citing ETF inflows and growing corporate and government demand.
Bitcoin continues to hover near $102,578, following a recent flirtation with the $105,000 level. However, despite short-term price cooling, market participants remain focused on long-term indicators, particularly those suggesting strong demand momentum.
For instance, Bitwise CIO Matt Hougan, in an interview with David Lin on May 14, maintains a projection that Bitcoin will reach $200,000 by year-end, citing increased institutional activity, improving regulatory frameworks, and government involvement as primary catalysts.
Matt Hougan said that Bitcoin hadn’t already surged due to a period of significant economic uncertainty, which had affected not only Bitcoin but all risk assets. He explained that stocks were also down substantially, and the broader market had dipped as a result.
However, he expressed confidence that, over time, as economic volatility eased, all the positive developments surrounding Bitcoin would catch up and ultimately propel it to new all-time highs.
Institutional and Government Demand Lead the Narrative
Matt Hougan emphasized that Bitcoin’s supply remains capped at 21 million, with just 165,000 new coins mined annually. Against this limited supply, demand has surged across multiple fronts.
According to Hougan, ETFs purchased 500,000 Bitcoin in the previous year—over triple the new annual supply. In addition, corporations such as MicroStrategy and Metaplanet acquired more Bitcoin.
Meanwhile, the U.S. government already holds over $17 billion in Bitcoin. Current administration policies under President Donald Trump have created an atmosphere that supports further accumulation.
A recent executive order has tasked the Secretaries of Treasury and Commerce with sourcing additional Bitcoin without burdening taxpayers.
This initiative could involve selling portions of the nation’s gold reserves or other crypto assets. Furthermore, reports confirmed that Abu Dhabi purchased $460 million worth of Bitcoin, with several other governments exploring similar moves.
He remarked: “I think you’re going to see 10 — maybe more — governments around the world make their first allocation to Bitcoin this year.”
Other Watchers Eyeing $200,000
Separately, Gautam Chhugani, Senior Analyst at Bernstein, reiterated the firm’s long-standing forecast of $200,000 by 2025, stating that election outcomes would not affect Bitcoin’s trajectory.
Supporting this view, Intuit Trading, founder of Blockchaindaily, reported that Bitcoin exceeded prior expectations. After bottoming at $74,000 in April, the asset has climbed steadily. The analyst now follows a revised trendline that suggests a faster trajectory, projecting a $200,000 price by July 2025 based on current momentum.
Bitcoin would need to increase by approximately 94.98% to go from $102,578 to $200,000.
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