GET 10% OFF ON YOUR FIRST ORDER. FOR A LIMITED TIME ONLY. Use code: WELCOME on checkout

Can Bitcoin Hit $200,000 Only If The Dollar Falls? Bitwise CIO Answers

Matt Hougan, Chief Investment Officer of Bitwise Asset Management, addressed a pressing question among investors: Does the US dollar need to collapse for Bitcoin to reach a valuation of $200,000 per coin? Hougan’s analysis suggests that Bitcoin’s ascent to such a price level does not depend on a decline in the US dollar’s value but rather on Bitcoin’s maturation as a store-of-value asset and global economic factors increasing demand for such assets.

Bitcoin Can Reach $200,000 Without US Dollar Collapse

In a series of posts on the social media platform X, Hougan recounted a conversation with a financial advisor who posed the question over dinner. “Does the US dollar need to collapse for Bitcoin to hit $200,000? The answer is ‘no.’ Here’s why,” Hougan wrote.

Hougan explained that investing in Bitcoin involves making two distinct bets. First, “Bitcoin will succeed in establishing itself as a new ‘store of value’ asset.” Currently, Bitcoin’s market capitalization is approximately 7% of gold’s $18 trillion market. Hougan noted, “If it ‘matures’ and becomes 50% the size of gold, every Bitcoin is worth over $400,000.

Second, “Governments will abuse fiat currencies and increase demand for ‘store of value’ assets.” If the market for store-of-value assets triples in size due to such mismanagement, and Bitcoin maintains its 7% market share, “each Bitcoin is worth over $200,000.”

He emphasized that these two arguments are independent but can compound. “If Bitcoin matures and the store of value market doubles, you quickly get to seven figures. For what it’s worth (FWIW), I think this is the most likely scenario eventually,” Hougan stated.

Addressing the initial question directly, Hougan asserted, “So, no, the dollar doesn’t need to collapse for Bitcoin to hit $200,000. All you need is Bitcoin to continue on its current path of maturing as an institutional asset.” He added that both factors—BTC’s maturation and potential fiat currency abuse—are increasingly likely to occur simultaneously. “That’s why Bitcoin is surging toward all-time highs.”

The discussion continued with input from Kevin Brent Cook, a user on X, who added nuance to Hougan’s explanation. “Concise, clear, and simple,” Cook remarked. “I would only add that the reason a ‘collapse’ isn’t necessary is that under ‘abusing fiat’ comes the steady grind of deficit-driven dollar inflation (the US writes endless checks that never bounce), which naturally creates more currency chasing all assets.”

Hougan concurred with Cook’s assessment, responding with a succinct “Agreed.”

At press time, BTC traded at $72,445, up 23% in the last 20 days.

Bitcoin price

Latest Press

default post thumbnail
News
5 hours ago
Dogwifhat (WIF) Shines With 15% Rally In The Past Week — Is $2.8 The Next Stop?
The emergence of Donald Trump as the president-elect of the United States has been one of the bigges...
READ MORE
default post thumbnail
News
5 hours ago
Crypto Analyst Predicts Notcoin Price To Surge 76% — Here’s How
The Notcoin price has been in red-hot form in the past day, and a popular crypto analyst on the X pl...
READ MORE
default post thumbnail
News
5 hours ago
Bitcoin Stock To Flow Model Reveals $500,000 Price Target
According to data from CoinMarketCap, Bitcoin (BTC) has gained by 0.66% in the past 24 hours with it...
READ MORE
post-thumbnail
News
5 hours ago
Will Shiba Inu Price Jump Over 300%? This Analyst Thinks So
Experts are confident that Shiba Inu could potentially undergo a massive price surge on the back of ...
READ MORE
default post thumbnail
News
5 hours ago
Bitcoin Climbs to $79,600 All-Time High, Fuels Broader Crypto Market Rally
Bitcoin soared to a historic high of nearly $80,000 on Sunday, fueled by renewed optimism within the...
READ MORE
default post thumbnail
News
5 hours ago
Bitcoin Stock-to-Flow Model Back on Track, Predicts $500K Per BTC: PlanB
After surging by more than 15% within a week, as well as breaking its March all-time high and charti...
READ MORE
post-thumbnail
News
5 hours ago
Double-Digit Price Surges From These Altcoins as Bitcoin (BTC) Eyes $80K (Weekend Watch)
It feels like a bull cycle once again as bitcoin’s price continues to chart new all-time highs alm...
READ MORE
post-thumbnail
News
5 hours ago
Dogecoin (DOGE) Rallies 12% to 3-Year High Amid ‘Face-Melting’ Price Predictions
The largest meme coin by market cap has continued its rally, which was solidified by Donald Trump’...
READ MORE
default post thumbnail
News
5 hours ago
This Is What Happened to the Bitcoin, Ethereum ETFs During US Election Week: Recap
In perhaps one of the most intriguing and important weeks for the US, local investors showed uncerta...
READ MORE
post-thumbnail
News
5 hours ago
Cardano (ADA) Soars 30% Daily as Founder Charles Hoskinson Makes Big Announcement
Charles Hoskinson, the founder of IOG, the entity behind Cardano, has returned from his recent absen...
READ MORE

Publish an article now

Unlock the power of media for instant visibility to the target audience, major SEO boost, greater website traffic and conversion rates.

click here to get started