Bitwise Chief Investment Officer: Bitcoin could rise to $200,000 depending on dual forces, not the collapse of the dollar

Odaily Planet Daily Report: Bitwise Chief Investment Officer Matt Hougan stated that BTC may rise to $200,000 without the need for a US dollar collapse as a driving factor. In his latest investor memo, Hougan said that the value of BTC is determined by two independent forces: its role as a digital store of value and the inflationary pressure on fiat currencies. Hougan said that many analysts overlook the broader potential of BTC, often believing that its growth depends on a weakening US dollar. "If you separate these arguments, you will have a clearer understanding of BTC." Hougan believes the first driver is BTC's status as a digital equivalent of gold. Although BTC only accounts for 7% of the estimated $180 trillion gold market, its market cap could grow significantly as investors recognize it. He pointed out: "Even if BTC only occupies 25% of the gold market, its price could rise and far exceed $200,000." The second force comes from the potential devaluation of fiat currencies (especially the US dollar), which may prompt more investors to use assets like BTC as a hedge. Given the US federal debt of $36 trillion, Hougan believes that the increasing fiscal pressure will drive a significant expansion of the value storage market, which will benefit BTC. He emphasized that even if only one of these forces becomes a reality, the value of BTC could still rise. If BTC's share in the value storage market increases, it could reach $214,000 even without inflationary pressure. Conversely, the expansion of the alternative asset market driven by concerns about fiat currencies could also drive up the price of BTC. However, if the two forces converge, the upside potential will be the greatest. Furthermore, he said that the utility of BTC may ultimately exceed its role as a store of value, with the potential to become an international settlement layer. He believes that broader applications can further enhance the value of BTC, making it a key participant in the global financial ecosystem. Hougan also warned investors to be aware of the risks of BTC trading, emphasizing the need to carefully consider volatility and regulatory issues. (CryptoSlate)