Bitcoin’s recent surge past $106,000 could be just the beginning, according to Matt Hougan, CIO of Bitwise Asset Management. In a recent interview, Hougan predicted that Bitcoin could reach $200,000 within the next year, driven by “three irrepressible sources of demand”: ETFs, public companies like MicroStrategy, and potentially, governments.
Hougan pointed to the possibility of a US Bitcoin strategic reserve as a major catalyst. Citing a bill proposed by Senator Lummis for the government to acquire one million Bitcoin, he argued that such a move could propel the price to $300,000, $400,000, or even $500,000, triggering similar actions by governments worldwide. While initially skeptical, Hougan acknowledged growing support for the idea within the Trump administration, estimating the chances at “less than 50%, but not zero.”
He emphasized that the current momentum is fueled by increasing awareness and adoption of Bitcoin across different investor segments, from retail investors to institutions. This “cascading series of educational breakthroughs,” combined with limited supply, supports the bullish outlook.
Hougan also predicted that Coinbase, currently half the size of Charles Schwab, could surpass the brokerage giant due to its “regulatory capture,” high margins, and expansion into areas like stablecoins and layer-two networks. He anticipates a surge in crypto IPOs in 2025, further normalizing the industry and bringing crypto into mainstream brokerage accounts.
However, Hougan cautioned that the biggest risk lies in politicians failing to deliver on regulatory clarity and pro-crypto legislation. He stressed the importance of a high-quality stablecoin bill and warned against interference from traditional finance. While optimistic, he acknowledged that the success of the crypto market in 2025 hinges on these regulatory developments.
