Bitwise CIO Matt Hougan said Bitcoin (BTC) is poised for a significant rise to “six-digit” prices as several key factors converge to increase investor enthusiasm.
Hogan said in a social media post on Oct. 18 that exchange-traded fund (ETF) flows will surge as investment in Bitcoin-based financial products reaccelerates as institutional interest in digital assets increases. He emphasized that he was doing it.
appetite increases
Bitcoin is the only cryptocurrency with a value of over $1 trillion, showing resilience and growth amid increasing demand from both institutional and retail investors. The main cryptocurrency has returned to near all-time highs and was trading just below $69,000 at the time of writing.
Bloomberg senior ETF analyst Eric Balchunas recently reported that U.S. Bitcoin spot ETF net flows have exceeded $20 billion, with the broader Bitcoin ETF sector managing more than $65 billion in assets. emphasized.
This rapid growth, achieved in less than a year, far outpaces traditional asset-based ETFs such as gold, which took six years to reach similar levels.
Hogan said the increased demand for Bitcoin ETFs is indicative of a shift in market sentiment, especially as institutional investors seek exposure to digital assets.
elections and rate cuts
Hogan, along with other industry analysts, also pointed to next year's US presidential election as a potential catalyst for Bitcoin prices.
With former President Donald Trump leading in on-chain betting polls and his vocal support for the industry, speculation has grown that the political climate could further drive Bitcoin adoption. are.
Hogan also emphasized the bipartisan agreement to refer to the widening budget deficit as an “infinite deficit.” The agreement would continue accommodative fiscal policies that could depreciate fiat currencies, making Bitcoin's deflationary nature more attractive to investors.
Meanwhile, China's economic stimulus, coupled with global interest rate cuts from the Federal Reserve and the European Central Bank, is expected to further stimulate demand for Bitcoin, as the low interest rate environment encourages risk-on behavior in financial markets. .
supply shock
Hogan also noted that the post-halving supply shock is “starting to feel the pain” as whales and ETFs continue to accumulate Bitcoin. Data shows that large Bitcoin holders are accumulating at an unprecedented pace, with whale wallets currently controlling 9.3% of the total supply.
Meanwhile, new Bitcoin whales have invested nearly $108 billion as of October 6, a 13x increase this year, according to CryptoQuant data. These new whales currently account for 48.8% of Bitcoin's total realized cap. This is the largest amount ever spent by these investors, and roughly equals the $113 billion held by the “old whales.”
The rapid increase in participation by new whales is considered a “generational change,” and the upper limit is expected to soon exceed that of older whales. The Realization Cap measures the value of each Bitcoin based on the last transaction price and is used to evaluate the value stored in Bitcoin.
