Key Points
- Bitcoin doesn’t need a U.S. dollar crash to reach six-figure value, according to Bitwise CIO Matt Hougan.
- Increasing demand for store-of-value assets and ongoing government spending can boost Bitcoin’s value.
Bitcoin’s Value Independent of the Dollar
Matt Hougan, CIO of Bitwise, has expressed that Bitcoin (BTC) doesn’t necessarily need a crash in the U.S. dollar to become a six-figure asset. While Bitcoin is often seen as a hedge against the dollar’s declining purchasing power, and a potential beneficiary of a fiat implosion, Hougan disagrees with the idea that a dollar collapse is necessary for Bitcoin to reach $200,000 per BTC and beyond.
His reasoning is based on two main factors: the growing demand for store-of-value assets and the continuous government spending. These elements, according to Hougan, strengthen investor confidence in Bitcoin. He further stated that store-of-value markets have gained momentum due to “governments abusing their currencies.”
U.S. Spending and Bitcoin’s Growth
For instance, U.S. spending has accelerated in recent years, and the country’s debt has exceeded $35 trillion. The national debt is estimated to grow by about $1 trillion every 100 days at its current pace.
In addition, Bob Elliott, CIO of Unlimited Funds, pointed to data suggesting that “developed world sovereign debt,” such as U.S. Treasuries, may no longer serve effectively as bailout mechanisms, potentially supporting a pro-Bitcoin outlook.
Hougan anticipates this trend to persist, leading to more mature Bitcoin markets, increased adoption, and higher prices for the leading cryptocurrency. He believes that Bitcoin doesn’t need the dollar to collapse to hit $200k. All that is required is for Bitcoin to continue on its current path of maturing as an institutional asset.
His comments were made on Oct. 29, as Bitcoin rallied closer to its all-time high set in March. Bitcoin rose 5% in the last 24 hours, reaching $72,756. While technical indicators pointed to a potential Bitcoin breakout, historical patterns warn of volatility as U.S. citizens get ready to vote in the upcoming presidential election.
