Bitcoin could soar to a $200,000 valuation even if the U.S. dollar remains relatively strong, according to Bitwise’s Chief Investment Officer, Matt Hougan. Hougan suggests that Bitcoin’s growing appeal as a “store-of-value” asset, combined with continued fiat currency devaluation, could drive its price well into six-figure territory.
In an Oct. 29 post on X (formerly Twitter), Hougan addressed a question from a financial adviser about Bitcoin’s potential to reach $200,000 without a major crash in the dollar. Hougan explained that investing in Bitcoin involves two significant factors: Bitcoin’s potential as a stable value asset, and governments’ tendency to overuse fiat currency printing, which erodes purchasing power. He noted that the combination of these factors could fuel demand for Bitcoin and similar assets.
Bitcoin as a “Store-of-Value” Asset
Bitcoin’s current market cap stands at around $1.4 trillion, or approximately 7-8% of gold’s $18 trillion market value. Hougan believes Bitcoin could mature to capture half of gold’s total value, translating to a Bitcoin price near $400,000. However, if Bitcoin only maintains its 7% market share relative to gold but sees a threefold increase in demand, each Bitcoin could still reach $200,000.
“Importantly, these scenarios are additive,” Hougan said, explaining that if Bitcoin matures alongside a doubling of the overall store-of-value market, the cryptocurrency could potentially reach a million-dollar valuation.
Global Economic Pressures Favoring Bitcoin
Interest in traditional safe-haven assets like gold has risen amid global economic uncertainty and geopolitical instability, particularly with tensions increasing in the Middle East. Gold prices hit a record $2,778 per ounce on Oct. 29, indicating strong demand. The U.S. dollar, meanwhile, may face additional pressures as part of broader economic policy strategies.
A recent report by Financial Sense highlighted that the U.S. needs a solid industrial strategy to stay competitive globally, particularly with China. Economists Marc Fasteau and Ian Fletcher argued that such a policy would likely include support for emerging technologies, countermeasures against subsidized competition, and policies to reduce the dollar’s value.
Bitcoin’s Performance and Market Predictions
Amid these economic conditions, Bitcoin has gained momentum, nearing its previous all-time high. On Oct. 29, Bitcoin briefly hit $73,562 before slightly pulling back to $72,392, based on CoinGecko data. Many analysts suggest Bitcoin is primed to achieve new highs in the coming weeks, as these market forces continue to drive interest in decentralized store-of-value assets.
