Matt Hogan, the Chief Investment Officer (CIO) of asset management firm Bitwise, predicted that the prices of Bitcoin and Ethereum will surge significantly by 2025.
He explained the reasons for this bold prediction in a YouTube interview.
3 Reasons Why Bitcoin Will Reach $200,000 by Next Year
Hogan cited three factors to support his positive outlook: the US election, massive idle capital, and the long-term impact of Bitcoin ETFs. Hogan argued that from a political standpoint, a pro-crypto president like Donald Trump or a neutral president like Kamala Harris could have a positive or at least non-negative impact on Bitcoin.
Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030
At the time of writing, Trump's probability of becoming president reached 58.9%. Investors believe that Trump will implement policies that will foster market growth, and Bitcoin has already surpassed $67,000.
Hogan also revealed that many major investors have not yet entered the market, as they are waiting for political and regulatory clarity. However, if Bitcoin continues its upward trend, these investors will no longer be able to wait.
"The election represents uncertainty, so investors are hesitant and waiting. They've realized that crypto is not going away. They've recognized that crypto is entering the institutional world, but they thought they could wait. If this rally continues, if Bitcoin goes towards $70,000, it will become a self-fulfilling prophecy. People will realize they need to get on the train." Hogan said.
Hogan also emphasized the long-term potential of Bitcoin ETFs. As a former CEO of ETF.com, he believes that $20 billion in inflows in the first year of a Bitcoin ETF would be a huge success. Like gold ETFs, Bitcoin ETFs are still in their early stages.
According to the latest data, despite being less than a year old, the Bitcoin ETF has already surpassed 52% of the AUM of gold ETFs.
"I was the CEO of ETF.com for 6.5 years before coming to Bitwise. This is my specialty. What crypto needs to understand about ETFs is that they're a multi-year story. If you look at gold ETFs, it was the most successful ETF launch in history...I think the same thing is going to happen with Bitcoin ETFs. We're still in the very early stages." Hogan said.
When asked about Bitcoin price predictions, Hogan forecasted that BTC will set a new all-time high by the end of the year. He also expressed confidence that Bitcoin could reach $200,000 by 2025.
Read more: How to Trade Bitcoin ETFs: A Step-by-Step Approach
Hogan is also optimistic about Ethereum. Ethereum has been undervalued this year due to its lower price appreciation compared to Bitcoin. However, Hogan explained that Ethereum remains the best platform for DeFi applications, stablecoins, and tokenization. He believes that through regulation and technological advancements, Ethereum can also reach new all-time highs by 2025.
