The Chief Investment Officer (CIO) of the cryptocurrency asset management company Bitwise has stated that strong demand could push the price of Bitcoin much higher by the end of this year.
In a recent interview with CNBC Television, Mr. Matt Hougan, CIO of Bitwise, stated that the increase in demand from top institutions combined with limited supply could cause the price of Bitcoin to rise by about 70% from its current level.
There is an unwavering demand from corporations and institutional investors, which is colliding with extremely limited supply. We all know that the Bitcoin network only produces 450 Bitcoins each day. Just yesterday, ETF funds purchased up to 10,000 Bitcoins.
Institutional investment in Bitcoin is a one-time event. This process will take many years to unfold. However, I believe that throughout this time, there will be a continuous pricing pressure, with demand far exceeding supply. The natural reaction to this situation is exactly what we are witnessing in the market, which is that the price of Bitcoin tends to rise.
I think that the price of Bitcoin has a long way to go. It could end the year at nearly $200,000. Therefore, I advise everyone to get used to the story of new all-time highs.
Mr. Hougan also emphasized that interest in Bitcoin applications is increasing, especially in the context of the current geopolitical instability.
Bitcoin provides an important service: the ability to store assets digitally without relying on banks. Sentiment certainly affects the market. It impacts stocks and bonds, but the main factor driving this growth is that more and more people are seeking the service that Bitcoin offers.
In a world full of uncertainty, where there are tariffs and geopolitical tensions, people increasingly want to own their assets in digital form.