- Bitwise CIO Matt Hougan recently reinforced forecasts that Bitcoin will reach $1 million per coin within a decade.
Many key personalities in the financial sector have doubled down on their prediction that Bitcoin (BTC) will eventually reach $1 million per coin. Alongside the overwhelming support are also people mocking such a thesis.
Matt Hougan, Chief Investment Officer (CIO) at Bitwise, is among those who believe $1 million per Bitcoin is feasible. For him, the scenario is not a matter of “if” but a matter of “when.”
Interestingly, the senior executive from one of the world’s largest asset managers projected that the event could occur within a decade.
When Will the Market Realize the $1M Per Bitcoin Scenario?
Hougan drew parallels from the exponential growth of gold since the first exchange-traded fund (ETF) based on it launched in 2004. At the time, the gold market was only worth $2.5 trillion. It was a far cry from its current market cap of over $36 trillion.
The Bitwise CIO highlighted that gold has posted a compound annual growth rate of 13% since then. He noted that the trend could carry over amid US dollar devaluation, rising government debt, geopolitical tensions, and more.
Bitcoin, a “global store of value” often referred to as “digital gold,” will significantly appreciate together with the world’s top asset by overall valuation. Hougan projected that the store-of-value market will rise from nearly $38 trillion (consisting of $36 trillion for gold and $1.4 trillion for BTC) to around $121 trillion in 10 years.
To date, Bitcoin accounts for only about 4% of the store-of-value market. However, given its rapid adoption due to the crypto market’s increasing maturity, its market share could reach 17% within the timeframe, thus catapulting its value to $1 million per BTC.
What’s more, Hougan emphasized that his forecast was “too conservative.” As macro conditions worsen to crisis levels, Bitcoin might even account for more than the 17% estimate, which further reinforces the $1 million per BTC narrative.
Rising Inflationary Pressure in the US
One of the pressing issues driving market pressure is the US national debt nearing the $39 trillion threshold. On Wednesday, the figures were already at $38.87 trillion, as tax revenues, tariffs, and other government initiatives fail to ease the federal budget deficit, which has now reached $1.7 trillion.
Another issue is the ongoing conflict in the Middle East as the US and Israel continue to wage war against Iran. The sticky situation in the region has led to ballooning oil prices, which threaten a chain reaction to basic commodities and thereby amplifying inflation.
Disclaimer: Bitwise CIO Matt Hougan’s commentary featured in this article is only for informational purposes. It does not constitute financial advice or a product recommendation from the author or the Blockzeit team.
