As we move through the month of Moonvember, Bitcoin [BTC] continues its remarkable run, setting new records along the way. The latest milestone was breaking through the $90,000 barrier to reach an all-time high of over $93,000.
Although the price experienced a slight downturn shortly after, with the current trading value at $89,604, down 0.98% from the previous day, the overall yearly gains remain impressive at 152%.
The substantial surge in Bitcoin’s value has undoubtedly brought substantial profits to long-term holders, yet it has also raised uncertainties among potential investors contemplating if they have missed the boat. But is it truly too late to get involved?
Insight from Bitwise CIO on Bitcoin’s Future
In a recent communication, Matt Hougan, Chief Investment Officer at Bitwise, offered reassurance to those hesitant about investing in Bitcoin.
Hougan’s perspective suggests that Bitcoin is still in its early stages until it hits a price of $500,000. He remarked,
“$500K per coin is the correct demarcation.”
Despite acknowledging the volatile nature of Bitcoin, Hougan believes this price point signifies a transition from being early to mature in the Bitcoin market, stating,
“It marks the point where bitcoin would be mature.”
Bitcoin versus gold
Hougan highlighted that Bitcoin is yet to achieve the level of market maturity observed with gold. Despite its recent advancements, skepticism towards Bitcoin remains prevalent among regulatory bodies and the media.
While Bitcoin has made impressive strides fueled by the success of Bitcoin exchange-traded products [ETPs] and growing support from pro-crypto policymakers, Hougan emphasized,
“But until bitcoin is as boring as gold—widely held by central banks and institutions alike—it’s by definition still early.”
For Bitcoin to equal the market strength of gold, which stands at $18 trillion, Bitcoin’s market at around $2 trillion would need substantial growth to reach a total store of value market of $20 trillion.
Plotting BTC’s Journey to $500K
With the current price levels, achieving $500,000 would require a near 460% increase. The question then arises—what factors could accelerate Bitcoin towards this goal?
Hougan pointed out that significant involvement from central banks could act as a catalyst for this surge.
Highlighting the substantial gap between how much gold governments hold versus Bitcoin, where governments control less than 2% of the total Bitcoin supply, Hougan suggested that this investment landscape needs to shift. With the potential for Donald Trump’s reelection, there is optimism that these aspirations could come to fruition.
American Senator Cynthia Lummis has expressed confidence in plans to establish a strategic Bitcoin reserve post-Trump’s inauguration, potentially paving the way for Bitcoin to be viewed as a strategic asset, as anticipated by Barbara Goodstein, Managing Partner at R360.