According to the analyst, since the launch of spot Bitcoin ETFs, the asset's price has become much more predictable. This, in turn, positively affects the adoption of the first cryptocurrency by management companies.
According to the expert, governments and large corporations have become key players shaping the demand for the first cryptocurrency. As a result, the price of Bitcoin has increased by more than 27%. Hougan noted that Bitcoin is trading near its historical high amid very conservative policies from the U.S. Federal Reserve (Fed).
With the decrease in interest rates in September and the subsequent weakening of the U.S. dollar, the upward price trend of the first cryptocurrency will continue again. As there are more major players in the market, the volatility of the coin will decrease, and sharp corrections in quotes will no longer occur, the analyst believes.
He also noted that markets do not rise on good news. They rise on good news that has not yet been priced in. That is, if positive information is expected and already reflected in the current asset prices, its publication will not lead to a market rise. Growth occurs only when the news is better than expected.
Hougan believes that the market overall underestimates the scale of the cryptocurrency bull cycle, but he also overlooks some factors that could play a significant role in shaping the trend of Bitcoin and other cryptocurrencies in the coming months.
Earlier, Matt Hougan stated that Bitcoin will show significant growth over the next few years, breaking the classic four-year halving cycle.
