Bitcoin Surpasses $90,000 Amid Pro-Crypto Politics

As Bitcoin continues to reach new all-time highs following Donald Trump’s pro-crypto presidential election win, Bitwise Chief Investment Officer Matt Hougan predicts a price of $500,000 before the cryptocurrency matures.

Bitcoin recently surpassed $90,000, currently trading at $87,917, marking a nearly 20% increase since Trump's victory. Hougan acknowledged potential market pullbacks but suggested that $100,000 is likely not far away, stating, "Until bitcoin hits $500K, it’s still early."

Making the Case for $500,000

Though recognizing the uncertainty and volatility associated with Bitcoin, Hougan argued that a price of $500,000 signifies the transition from an early-stage asset to a mature one. He explained that as governments accrue debt and devalue currencies, demand for store-of-value assets like gold and Bitcoin will rise.

Currently, Bitcoin lacks the institutional acceptance gold enjoys. Hougan pointed out that it remains notable when pension funds invest in Bitcoin, while authorities caution against including it in 401(k) portfolios.

Despite the advancements made through Bitcoin ETPs and pro-crypto policymakers, Hougan emphasized that Bitcoin is still viewed as a speculative asset rather than a stable one like gold.

Hougan’s rationale for a $500,000 valuation comes from comparing Bitcoin’s approximate $2 trillion market to gold's $18 trillion market—asserting that a mature Bitcoin should capture half of that sector. This would necessitate increased allocation from institutions, particularly central banks.

"Today, governments hold roughly 20% of the world's gold reserves, compared to less than 2% of Bitcoin," Hougan noted, acknowledging the challenge ahead to narrow that gap. He mentioned plans from Senator Cynthia Lummis (R-WY) to establish a national Bitcoin reserve as a significant step forward. If executed, reaching a $500,000 Bitcoin valuation could become attainable.

"Until then, it’s still early," Hougan concluded, adding, "Could we see $1 million Bitcoin? Higher? Absolutely. But $500K feels like a good start."