In a special interview Matt Haugen, chief investment officer at BitWise Asset Management, shared his bullish view on Bitcoin with Yahoo Finance, projecting a significant price increase by the end of 2025. , linking this forecast to three primary sources of demand: Exchange Traded Funds (ETFs)Corporate investment, and government acquisitions.
Haugen elaborated, “There are ETFs that are emptying bitcoin, public companies like MicroStrategy are hoarding bitcoin, and now we’re seeing discussions about governments investing in bitcoin. It ultimately boils down to supply and demand.” is – there is too much demand and not enough supply, which drives up the price.”
When questioned about the sustainability of such demand, Haugen emphasized the gradual awakening of various investor segments to Bitcoin’s value proposition. “People wake up to bitcoin at different paces. We’ve seen retail investors get involved first, followed by companies and financial advisors, and now institutions are recognizing that bitcoin belongs in a diversified portfolio,” he explained. .
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“Bitcoin is now a global macro asset worth a few trillion dollars, and virtually every investor should have some exposure. We still have a large number of investors, so I believe we’re still very early in the journey.” . We have a lot of quarters to go,” he added.
How high could the price go if the US buys Bitcoin?
An important aspect of Haugen’s forecast hinges on the potential establishment of a US strategic bitcoin reserve (SBR). Addressing this, Haugen commented, “If we get a bitcoin strategic reserve where the government is buying bitcoins, like Senator Loomis’s bill proposes for the government to buy a million bitcoins, $200,000 in bitcoins looks weird. Going to give. You’re looking at three or four $500,000 in bitcoins. That’s a huge story because governments around the world have to do it.”
Haugen admitted he was skeptical of Trump’s suggestions to set one up at first SBR. “But for months, it hasn’t gone away. In fact we see leaders in the Trump administration suggesting that they’re open to it,” Hogan commented. The Bitcoin CIO still thinks the chance of the US government buying Bitcoin is less than 50%, but “it’s not zero,” he added. “If that happens or if we start to see it happen in other countries, you’re going to see a ripup in bitcoin that will make 2024 look pretty good in comparison.”
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Haugen also highlighted the role of institutional platforms, specifically citing Coinbase as a potential major beneficiary in the evolving crypto landscape. “Coinbase Charles is currently about half the size of Schwab, and we believe it could surpass Schwab in brokerage size,” he noted.
“Coinbase doesn’t have big competitors to challenge it; If you can believe it, there was a degree of regulatory capture. As a result, it has been able to maintain its high margins among brokers and then layer on things like stablecoins. [..,.] It would also help if this S&P 500; You see organizations buying it widely. I think it’s a really unique situation driven by the fact that there was a lot of regulatory uncertainty — it cleared the way for competitive fat and now it’s going to reap those rewards and a Really going to make, you know, maybe a redundant position leading this industry. America.”
Looking to the expanding market, Haugen anticipates an influx of crypto-related companies entering the public markets. “We can expect firms like Kraken, Anchorage, and Channelsys to go public, further normalizing the industry,” he said. “This influx will increase Wall Street coverage and institutional investment, setting the stage for a strong IPO window in 2025.”
Despite the optimistic outlook, Haugen acknowledged potential risks that could hinder bitcoin’s growth. “The biggest risk is that politicians don’t deliver on their promises—if we don’t achieve regulatory clarity or fail to establish a strategic reserve, Expected bull market May not materialize,” he warned. “Regulatory and political factors are important drivers for crypto in 2025, and any setback in these areas could create significant challenges.”
At press time, Bitcoin traded at $104,212.
Featured image created with DALL.E, chart from TradingView.com
