FameEX Hot Topics | Does Bitcoin Need a US Dollar Collapse to Reach $200K?

Bitwise's Chief Investment Officer, Matt Hougan, foresees Bitcoin reaching $200,000 without a collapse of the U.S. dollar. Addressing a question from a financial advisor on social media platform X—whether a U.S. dollar collapse is necessary for Bitcoin to hit $200,000—Hougan gave a decisive answer: “No.”

Hougan believes Bitcoin’s growth potential stems from two key factors, which he describes as “two simultaneous bets” for investors. The first is that Bitcoin will succeed in establishing itself as a new “store of value” asset, similar to gold. The second is that governments will continue to mismanage fiat currencies, which will drive increased demand for assets like Bitcoin that serve as alternative stores of value.

Exploring the first factor, Hougan explained that Bitcoin currently holds roughly 7% of gold’s $18 trillion market cap. Should Bitcoin reach 50% of gold’s market size as it matures, he estimates each Bitcoin could be worth over $400,000. The second factor is tied to a broader trend where individuals and institutions are looking beyond fiat currencies, increasing the “store of value” market. Hougan projected that if this market triples in size and Bitcoin maintains its 7% share, each Bitcoin could exceed a $200,000 valuation.

Hougan highlighted that these two factors could also compound, further boosting Bitcoin’s value. Should Bitcoin mature as a store of value asset and the overall market doubles, Bitcoin’s valuation could ultimately reach seven figures. He emphasized the role of institutional adoption in realizing this potential, as continued institutional support would be a powerful accelerator on Bitcoin’s path to $200,000 and beyond.

Hougan concluded by reiterating that a U.S. dollar collapse is unnecessary for Bitcoin’s success. Instead, Bitcoin’s progression as an institutional asset and the growing demand for alternative stores of value are enough to support its long-term growth, a trend he believes will propel Bitcoin toward new all-time highs.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.