FameEX Hot Topics | Must the US Dollar Collapse for Bitcoin to Reach $200K?

Bitwise's Chief Investment Officer, Matt Hougan, predicts that Bitcoin can reach a $200,000 valuation without the collapse of the U.S. dollar. In a discussion on social media platform X, Hougan addressed a common question he encountered from a financial advisor: “Does the U.S. dollar need to collapse for Bitcoin to hit $200,000?” His answer was clear: “No.”

Hougan explained that Bitcoin’s growth potential stems from two primary factors, presenting an alternative path to achieving unprecedented highs. “Investing in Bitcoin is essentially making two simultaneous bets,” he said. The first bet is that Bitcoin will succeed in becoming a new “store of value” asset, much like gold. The second is that governments’ mismanagement of fiat currencies will increase demand for such assets.

Elaborating on the first argument, Hougan noted that Bitcoin currently represents about 7% of gold’s $18 trillion market cap. If Bitcoin matures and captures just 50% of gold’s market size, he estimated each Bitcoin would be valued at over $400,000. The second argument centers on the “store of value” market expanding as more people seek alternatives to fiat currencies. If this market triples and Bitcoin maintains its current 7% market share, Hougan projected a valuation above $200,000 per Bitcoin.

These two factors could also reinforce each other, potentially driving Bitcoin’s value even higher. Hougan suggested that if Bitcoin matures further while the “store of value” market doubles, Bitcoin’s price could eventually reach seven figures. He emphasized the role of institutional adoption in this journey, noting that institutional support could accelerate Bitcoin’s path to $200,000 and beyond.

In conclusion, Hougan dismissed the idea that a U.S. dollar collapse is required for Bitcoin’s success. Instead, he suggested that Bitcoin’s maturing status as an institutional asset and an expanding market for “store of value” assets will drive its long-term growth, which is why he believes Bitcoin is on track to reach 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.