According to Bitwise Chief Investment Officer Matt Hougan, a Bitcoin price of $500,000 would be a sign of its true "maturity", as it is still in an "early stage". He pointed out that with Bitcoin recently hitting new highs due to the positive sentiment following Trump's election, $100,000 may soon be breached.
Hougan believes that the demand for Bitcoin as a store-of-value asset similar to gold will continue to increase, especially against the backdrop of governments' ever-expanding debt. He estimates that for Bitcoin to reach $500,000, it would need to capture half of the current $20 trillion store-of-value market, on par with gold, while central bank Bitcoin holdings remain a gap in this evolving landscape.
Hougan further mentioned that while central banks currently hold around 20% of the global gold reserves, they hold less than 2% of Bit coins. Citing Senator Cynthia Lummis' proposal, he said that if the US government plans to establish a Bit coin reserve, the $500,000 target could be achieved.
