- Matt Hougan forecasts that Bitcoin will break above $200,000 before the end of 2025.
- ETFs acquired $5.2 billion in Bitcoin over the past 30 days amid supply constraints.
- Hougan says breaking free from the $100K range has set Bitcoin up for new price discovery.
Bitwise Chief Investment Officer Matt Hougan has projected Bitcoin will surpass $200,000 by the end of 2025. He has cited massive institutional demand meeting limited token supply as the primary catalyst. Hougan’s forecast arrives as Bitcoin sets a new all-time high of $118,403, surpassing previous resistance levels.
Hougan attributes the current price surge to unrelenting demand from corporate buyers and exchange-traded funds rather than correlation with technology stocks or political developments.
ETF data supports Hougan’s thesis with $5.2 billion in Bitcoin acquisitions over the past 30 days. This shows substantial institutional commitment to cryptocurrency exposure. These purchases by regulated investment vehicles signal mainstream financial acceptance and create persistent buying pressure.
Breaking $100K Gravity Enables Higher Targets
Bitwise CIO says Bitcoin is breaking free from the $100,000 range it held for six months, suggesting this psychological barrier no longer limits its price movement. Now that Bitcoin has broken out of this gravitational pull, Hougan believes price discovery enters unknown territory, with the likelihood of accelerated appreciation.
Corporate adoption trends underpin the supply-demand shortage driving current price action. Companies are investing their treasury reserves in Bitcoin and, simultaneously, removing circulating supply from the market through long-term holding trends that remove tokens from trading.
The finite supply of 21 million Bitcoin tokens creates limitations that exacerbate the cost impact of growing institutional involvement. Every significant allocation notice removes supply for future buyers, establishing a feedback loop that sustains greater valuations.
Institutions Now View Bitcoin As a Legitimate Investment
Hougan’s $200,000 goal would require around 69% appreciation from current all-time highs, which would be huge but in line with historic volatility trends for Bitcoin.
Today’s market environment supports ongoing institutional buying through managed vehicles more than speculative purchases, which defined earlier Bitcoin cycles. ETF frameworks enable pension funds, endowments, and insurance firms to access Bitcoin via well-known investment vehicles.
The institutional adoption narrative is different from previous Bitcoin rallies driven by retail speculation and hype. Institutional money managers now view Bitcoin as a legitimate portfolio investment and not an experimental tech investment.
Bitcoin’s performance across multiple timeframes supports bullish momentum with 5.8% daily gains, 7.9% weekly appreciation, and 102.6% annual returns. These metrics indicate sustained demand across different investment horizons rather than short-term speculation.
The convergence of limited supply and accelerating institutional demand creates conditions that historically precede major Bitcoin price advances. Hougan’s prediction highlights these fundamental dynamics, rather than relying on technical analysis or short-term market sentiment.
Related: Peter Schiff Slams Bitcoin “Fools,” Points Out Silver To Outperform BTC This Year
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