Matt Hougan, a top executive at Bitwise Asset Management, expressed confidence that bitcoin’s rise to $200,000 would not require a devaluation of the US dollar. He believes that bitcoin’s strengthening as a store of value will occur as it aligns with traditional assets like gold.
Hougan pointed out that bitcoin’s market capitalisation currently stands at approximately 7% of gold's market value, which is around $18 trillion. He suggested that if digital gold reaches even half of physical gold’s capitalisation, bitcoin’s price could surge to $400,000 per coin. At that stage, the crypto asset would be seen as mature and would be accepted as a reliable capital preservation tool, especially within major institutional portfolios.

Furthermore, Hougan noted that rising demand for bitcoin will be bolstered by governments’ inefficient monetary policies. The growth in money supply and inflation is pushing people to seek alternative savings vehicles, increasing interest in non-sovereign assets like bitcoin. The Bitwise Asset Management head emphasised that bitcoin’s maturity and the growing demand for stable assets complement each other. If bitcoin achieves parity with traditional assets, its value could potentially reach seven figures in the long term.

Bitwise Asset Management, founded in 2017, is a US-based investment firm specialising in crypto-asset management. Known as one of the largest cryptocurrency managers in the US, it offers clients index and specialty funds based on bitcoin and ethereum, tailored for various investor types. The company is also known for its comprehensive crypto exchange report, which has influenced regulatory perspectives on the transparency of cryptocurrency trading.