- Bitwise predicts Bitcoin could hit $100,000 or more with upcoming events like the halving, indicating strong market potential.
- Bitcoin’s price soared to $64,000 due to high demand for spot Bitcoin ETFs, driven by retail investors, hedge funds, and advisors.
Recently, Bitcoin has surged to impressive highs, reaching as high as $64,000. According to Matt Hougan, Chief Investment Officer at Bitwise Asset Management, this rally has been significantly fueled by the growing interest in US-listed spot Bitcoin ETFs. In a recent appearance on CNBC’s “Squawk Box,” Hougan likened this moment to an “IPO moment” for Bitcoin, marking a new era of price discovery for the cryptocurrency.
“With #Bitcoin right now … there is too much demand and not enough supply.” – Matt Hougan, CIO Bitwise pic.twitter.com/1B0joUQ1Pp
— Michael Saylor
(@saylor) February 29, 2024
The initial surge in interest has primarily originated from retail investors, hedge funds, and independent financial advisors. Leveraging insights from earlier Crypto News Flash reports suggest that institutions like Bank of America’s Merrill Lynch and Wells Fargo have begun offering spot Bitcoin ETFs to their wealth clients.
This move indicates a substantial shift in institutional attitudes about crypto investments, even though they are only available at client request. According to reports, Morgan Stanley is also considering adding spot Bitcoin ETFs to its brokerage platform, which is more evidence of traditional financial institutions’ increasing acceptance of Bitcoin.
According to Hougan, the cryptocurrency market is now in a new phase of price discovery because of Bitcoin ETFs. A supply-demand imbalance has been produced by the extraordinary demand for these ETFs and the restricted amount of Bitcoin available because of the impending halving event. Hougan believes that this dynamic has the potential to significantly increase the price of Bitcoin. According to him, Bitwise’s initial 2024 price projection of $80,000 for Bitcoin may not be met, with prices perhaps rising to $200,000 or even higher.
Record Inflows Highlight Investor Confidence
Seven weeks after spot Bitcoin ETFs were introduced, significant capital inflows have indicated that investors are still quite confident in these investment vehicles. The fourth-largest inflows, totaling $1.11 billion, have been recorded by the Bitwise Bitcoin ETF (BITB), according to BitMEX Research. On February 28, the influx of money hit a record high of $676.8 million, indicating that investors’ desire to be exposed to Bitcoin is increasing. Significant institutional interest in cryptocurrency investments is evident from the top two inflows overall, BlackRock’s IBIT and Fidelity’s FBTC.
Bitcoin’s price may see considerable upward pressure in the upcoming months due to the inflow of institutional capital into Bitcoin ETFs. Bitcoin may surpass market expectations and set new price records, according to Hougan’s bullish price forecasts. The price trend of the cryptocurrency seems destined for additional growth as institutions begin to acknowledge Bitcoin as an actual asset class.
Bitwise CEO Predicts $250K Bitcoin Price Sooner Than Expected
The CEO of Bitwise Asset Management, Hunter Horsley, is optimistic about the future of Bitcoin and believes it will reach $250,000 far sooner than most people think. Horsley’s optimistic assessment coincides with a spike in the price of Bitcoin, with record-breaking days for spot Bitcoin exchange-traded funds (ETFs).
Bitcoin is going to eat into gold’s TAM faster than people expect.
$250k Bitcoin could happen much sooner than most who’ve followed the space for years would imagine.
Why? For 15 years, Bitcoin proved it’s merits but was only accessible to some.
Bitcoin ETFs were Bitcoin’s…
— Hunter Horsley (@HHorsley) February 28, 2024
The CEO of Bitwise highlights that the 15-year history of Bitcoin has put it in a position for faster adoption, particularly with the arrival of ETFs. He believes Bitcoin will quickly overtake gold in market share because of its accessibility and track record. Horsley emphasizes that greater market involvement made possible by ETFs may cause Bitcoin to reach the $250K milestone earlier than anticipated.
