Key Points
- Bitcoin’s recent surge has sparked concerns among potential investors about being late to enter the market.
- Bitwise CIO, Matt Hougan, believes Bitcoin is still early and will reach maturity at a price of $500,000 per coin.
Bitcoin’s post-election bullish momentum has resulted in a new all-time high of over $93,000. Despite this, the price dipped shortly after, and at press time, the largest cryptocurrency traded at $89,604, with yearly gains standing strong at $152%.
Bitwise CIO’s View on Bitcoin
Matt Hougan, Chief Investment Officer of Bitwise, reassured potential investors who fear they may have missed the chance to invest in Bitcoin. He emphasized that Bitcoin will be considered “early” until it reaches a price of $500,000 per coin. This price, according to Hougan, marks the point where Bitcoin would be mature.
Despite the skepticism towards Bitcoin from regulatory bodies and media, Hougan believes that Bitcoin hasn’t yet reached the level of maturity seen with gold. He stated that until Bitcoin is as widely held by central banks and institutions as gold, it is by definition still early.
Bitcoin vs Gold
Hougan compared gold’s $18 trillion market to Bitcoin’s approximately $2 trillion, which together comprise the total $20 trillion store of value market. For Bitcoin to make up half of that, it would need to be valued at $500,000 per coin, making it a truly established asset.
To reach the $500,000 mark, Bitcoin would require an appreciation of close to 460%. Hougan believes that one of the most important catalysts for this rise would be the involvement of the central banks. Currently, while governments hold around 20% of the world’s gold reserves, they control less than 2% of the global Bitcoin supply.
American Senator Cynthia Lummis has expressed optimism that plans to create a strategic Bitcoin reserve will be implemented soon. If that happens, Hougan’s price target may finally materialize.
