Bitcoin’s Path to $200,000 Doesn’t Depend on Dollar’s Demise, Claims Bitwise CIO

Bitcoin’s path to reaching $200,000 doesn’t require a collapse of the US greenback.

As a substitute, Bitwise Chief Funding Officer Matt Hougan believes there are two key drivers that may assist BTC’s upward potential, providing a compelling perspective on its future as an institutional asset.

Institutional Maturity

Responding to a question concerning the US greenback’s impression on bitcoin’s trajectory, Hougan explained that investing in it entails making two concurrent bets – one that it’ll solidify its standing as a brand new “retailer of worth” asset, and one other that governments will abuse fiat currencies, thereby growing demand for alternate options.

He identified that BTC at present represents roughly 7% of gold’s market cap, valued at $18 trillion. If bitcoin had been to mature to seize 50% of gold’s market share, its worth may soar to over $400,000.

Then again, if the general “retailer of worth” market expands and bitcoin maintains its present market share, every BTC may nonetheless attain $200,000 if this market triples.

The Bitwise CIO additional elaborated that these arguments are interconnected; ought to bitcoin proceed to mature and the shop of worth market double, the potential worth may attain seven figures.

He concluded that whereas the US greenback’s collapse isn’t mandatory for bitcoin to hit $200,000, Its maturation as an institutional asset is essential. With rising proof supporting each arguments, Hougan means that bitcoin’s trajectory is on the rise, pushing it towards new all-time highs.

“So, no, the greenback doesn’t must collapse for bitcoin to hit $200k. All you want is bitcoin to proceed on its present path of maturing as an institutional asset. Nevertheless it’s more and more trying like each elements of the argument will come true. That’s why bitcoin is surging towards all-time highs.”

Gold Shines Amid Inflation Worries, Election Uncertainty

Whereas bitcoin’s trajectory towards $200,000 largely hinges on its maturation as a ‘retailer of worth’ asset, comparable market forces are additionally driving renewed curiosity in conventional safe-haven belongings like gold.

Investor considerations over inflation, worldwide tensions, and financial instability are driving a renewed concentrate on gold as a haven asset which soared to a brand new peak close to $2,800. The ultimate stretch of the US presidential election – that includes Republican Donald Trump and Democrat Kamala Harris with contrasting financial agendas – can also be amplifying gold’s attraction as a safeguard in opposition to uncertainty.