Bitcoin Could Hit $200,000 Without Dollar Collapse, Says Bitwise CIO

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In a recent analysis, Matt Hougan, Chief Investment Officer at Bitwise, shared his insights on Bitcoin price potential, suggesting it could reach $200,000 without requiring a collapse of the U.S. dollar.

Hougan’s perspective, shared in an October 29 post on X, responded to a financial advisor’s question on whether Bitcoin could hit this valuation even under stable economic conditions. His answer? Bitcoin’s growth does not depend on the dollar’s downfall but rather on the asset’s maturing role as a store of value amid continued fiat currency instability.

Bitcoin and Gold Comparisons

“When you invest in Bitcoin, you’re actually making two bets,” Hougan explained. The first, he stated, lies in Bitcoin’s potential to establish itself as a resilient store of value. The second bet revolves around governments, which, in his view, continue to strain the worth of fiat currencies through excessive monetary policies. As fiat value depreciates, the demand for Bitcoin as a “hard asset” intensifies.

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Hougan used an intriguing comparison with gold, pointing out that Bitcoin’s market cap stands at around 7-8% of gold’s $18 trillion value. For Bitcoin to reach $400,000 per unit, it would need to capture roughly half of gold’s total market share. In Hougan’s eyes, this outcome is feasible as the financial ecosystem increasingly recognizes Bitcoin as a reliable alternative to traditional stores of value.

Demand for Hard Assets Rising

Highlighting the ripple effect of currency depreciation, Hougan argued that if Bitcoin simply maintains its current market share relative to gold but sees demand triple, its price could indeed surge to $200,000. Yet, Hougan takes it a step further. “If Bitcoin matures and the store of value market doubles,” he noted, “you quickly get to seven figures.”

Amid global economic uncertainties, the demand for reliable assets is rising. The recent record high of $2,778 per ounce for gold reflects this trend, while geopolitical tensions and inflationary pressures are casting doubt on fiat currency stability. According to an October 29 report by Financial Sense, the U.S. may continue dollar devaluation as part of its industrial policy. Economists argue this strategy will help America remain competitive on the world stage, especially against China.