Because of a “massive supply-demand dynamic,” according to Bitwise’s chief investment officer, the price of bitcoin might rise above $200K this year. He emphasizes that there is “too much demand and not enough supply” for the cryptocurrency. Because of spot bitcoin exchange-traded funds (ETFs), he predicted “an even bigger wave” of demand for the cryptocurrency, saying, “It’s in a new era of price discovery and I think prices could go substantially higher from here.”
An Even Greater Wave Is On Its Way
In an interview with CNBC on Thursday, Matt Hougan, the CIO of Bitwise Asset Management, discussed his prediction for bitcoin. One of the eleven spot bitcoin exchange-traded funds (ETFs) that the U.S. Securities and Exchange Commission (SEC) approved in early January is Bitwise’s bitcoin ETF (BITB).
He said, “We’re seeing tremendous demand across all of these ETFs, including the Bitwise Bitcoin ETF.” “Registered investment advisors, or RIAs, are seeing retail investors enter these ETFs, as well as hedge funds and independent financial advisors.” Additionally, the chief investment officer stated:
As the main wirehouses begin to come up in the next few months, I believe an even bigger wave is on the horizon. However, this is the time of Bitcoin’s IPO. We are in a new era of price discovery, and I believe that prices will only rise further.
He clarified, saying, “These ETFs were not activated at the major wirehouses and major institutions when they were first introduced. Thus, retail, independent financial advisors, and hedge funds are the main sources of initial demand for each ETF. Thus, I believe that to be the main cause of what we’re witnessing
The Bitwise CIO explained that money is flooding into ETFs from institutional and individual investors alike, saying, “It’s just new demand.” Prior to the creation of ETFs, only a select group of investors could purchase bitcoin. Almost anyone may now purchase it. “The supply-demand dynamic is just off the hook,” he said.
2024 Bitcoin Price Forecast
According to Hougan, Bitwise predicted in December of last year that “bitcoin would trade at new all-time highs above $80,000 a coin” in 2024. He did, however, acknowledge that “we think we have to revise that upward based on what we’re seeing in our ETFs and these other ETFs.” In his opinion:
It might be one hundred thousand dollars. It might be $200,000. It might even be greater than that. There is really this enormous dynamic between supply and demand.
Noting that there is “actually a reduction in new supply coming up in April with the halvening,” he emphasized that there is “net new demand and a fixed supply.” “Investing can be complicated at times,” the CEO said. It’s simple at times. Right now, the only factor affecting bitcoin is supply and demand—there is too much demand and not enough supply.
Bitwise’s bitcoin fund was one of four spot bitcoin ETFs that were recently approved by a $30 billion investing platform. Wells Fargo and Merrill Lynch of Bank of America were reportedly providing spot bitcoin ETFs to select customers last week, according to sources. According to Bitwise CEO Hunter Horsley, the price of bitcoin might reach $250,000 before most people think.
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