Recently, Bitwise CIO Matt Hougan expressed optimism about Bitcoin. He said the cryptocurrency was due for a significant rally that would drive the token price well into six-figure territory due to several factors.
Comments reflected a broader optimism over digital assets after institutional investors continued to show confidence in Bitcoin’s potential. Therefore, the pace of inflows into Bitcoin-based ETFs has been viewed as an essential function of such a trend, reflecting changing market dynamics that may force Bitcoin’s price to new highs.
This growing institutional involvement also comes amid a confluence of supportive macroeconomic conditions and on-chain signals that most analysts claim will drive Bitcoin upward to a $100,000 valuation and even further.
Bitwise CIO Outlines Bitcoin’s Bullish Catalysts
Bitwise CIO Matt Hougan has claimed that Bitcoin, the flagship cryptocurrency, is all set to attain a six-figure price value. This will add more steam to the Bitcoin Bullish thesis, which has been gathering in the crypto community recently.
According to Hougan, Bitcoin, the only trillion-dollar crypto asset, will cross the mark of $100,000 per coin due to a combination of Institutional, Macroeconomic, and on-chain factors.
We’re heading to six-figure bitcoin.
* ETF flows reaccelerating* Election approaching* Infinite deficits (bipartisan agreement!)* Economic stimulus in China* Global rate cuts (Fed, ECB)* Halving supply shock starting to bite* Whales accumulating
— Matt Hougan (@Matt_Hougan) October 18, 2024
The CIO at Bitwise explained why he thinks so, naming the factors contributing to Bitcoin’s gradual rally to $100,000.
He commented:
“We are heading to six-figure bitcoin. * ETF flows reaccelerating * Election approaching * Infinite deficits (bipartisan agreement!) * Economic stimulus in China * Global rate cuts (Fed, ECB) * Halving supply shock starting to bite * Whales accumulating”
Hougan and analysts from QCP Capital and others have identified the upcoming 2024 US elections as a significant factor likely to drive a surge in Bitcoin’s price. With Donald Trump, a pro-Bitcoin candidate, leading in several betting platforms, the crypto industry sees this as a potential boost for Bitcoin’s value, supporting predictions that the cryptocurrency could surpass the $100,000 mark.
Also, there is quite a possibility that the Bitwise CIO was right, especially if we consider the fact that just recently, SEC approved NYSE and Cboe options trading on Spot Bitcoin ETFs, unlocking new opportunities for investors.
US Elections and Whale Accumulation Drive Bitcoin’s Path to $100K
Bitwise CIO also highlighted the activity of Bitcoin whales, increasing their investments in the asset and signaling strong confidence in its long-term growth. Whale accumulation is often viewed as an indicator of bullish sentiment, as large holders tend to buy during periods of anticipated upward movement.
Further strengthening this bullish outlook, Bloomberg’s Senior ETF Analyst, Eric Balchunas, noted the rapid growth of Bitcoin ETFs in the U.S. The latest data reveals that spot Bitcoin ETFs have accumulated over $20 billion in net flows, with $1.5 billion in inflows just this past week. The American Bitcoin ETF sector now manages more than $1.5 billion in assets, a significant milestone reached faster than similar asset classes like gold.
Balchunas went further that Bitwise CIO and compared this growth to gold ETFs, which took several years to achieve the same level of assets under management, emphasizing the speed at which Bitcoin ETFs capture market share.
Meanwhile, data from CryptoQuant founder Ki Young Ju showed that Bitcoin’s open interest hit an all-time high of $20 billion, with new whale wallets now controlling 9.3% of the total Bitcoin supply.
These trends in institutional involvement, coupled with on-chain factors, continue to support the case for Bitcoin’s climb toward $100,000. Currently, the cryptocurrency is trading around $68,217, leaving it with a $31,785 climb to hit the anticipated milestone.
The post Bitwise CIO Predicts Six-Figure Bitcoin is Inevitable and Here Is Why appeared first on CoinGape.
