Yesterday, the US announced the October consumer price index (CPI) in line with expectations, US stocks saw mixed results, Bitcoin broke through the 90,000 mark, reaching a historic high of $93,265. Bitwise founder Matt Hougan is optimistic, pointing out that Bitcoin reaching $100,000 is imminent, and has set a target price of $500,000 for Bitcoin.
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ToggleUS CPI Meets Expectations
The overall US consumer price index (CPI) for October rose 2.6% year-over-year, and the core CPI excluding energy and food rose 3.3% year-over-year, both in line with estimates.
According to CME FedWatch data, the moderate inflation data has increased the expectation of a rate cut by the Federal Reserve next month, with traders seeing an 86% chance of another 25 basis point cut in December, up from 58.7% the previous day.
Investors will also be watching the producer price index (PPI) to be released on Thursday. Fed Chair Powell will also deliver a speech later this week, and retail sales and industrial production data will be released on Friday.
Bitcoin Reaches New High of 93K
After Trump's confirmation, Bitcoin has surged from $69,000 to finally break through the previous high of $73,777 set in March, and has been setting new highs daily, reaching a historic high of $93,265 yesterday.
Bitwise: Bitcoin $100,000 Imminent, $500,000 Target
Bitwise founder Matt Hougan is optimistic, pointing out that Bitcoin reaching $100,000 is imminent, and he has even set a target price of $500,000 for Bitcoin.
Hougan points out that investment in Bitcoin is actually based on two reasons:
- As governments take on debt and devalue currencies, the demand for value-storing assets like Bitcoin and gold will increase
- People will increasingly accept Bitcoin as a means of value storage on par with gold
But for the second reason, people's acceptance is still in the early stages.
The current market size of gold is $18 trillion, and the market size of Bitcoin is about $2 trillion. This makes the value storage market about $20 trillion. Hougan's $500,000 target price is based on the estimate that Bitcoin and gold will each account for half of the market share.
Hougan believes that some progress has already been seen, such as the plan proposed by Senator Cynthia Lummis to establish a national Bitcoin reserve in the US, with the goal of using government funds to purchase more than $80 billion worth of Bitcoin. If this happens, a Bitcoin price of $500,000 will be well within our sights.
But he believes Bitcoin could potentially go even higher than that, as the $500,000 target is based on Bitcoin taking market share from gold, while in reality the entire market may continue to grow, especially as governments continue to increase debt and print money.
Can we see $1 million Bitcoin? Even higher? Absolutely. But $500,000 feels like a good starting point.
