Bitwise CIO Predicts BTC Can Reach $1M As Price Jumps Above $88k

Highlights,Bitcoin price has surged to a new all-time high of $88,000 on November 11, sparking discussions around the cryptocurrency’s future price potential. Matt Hougan, Chief Investment Officer of Bitwise Asset Management, stated that this rally could be a precursor to Bitcoin reaching six-figure valuations and potentially even $1 million in the long run.,Hougan emphasized the strong market dynamics driving Bitcoin’s latest surge, including increased interest from long-term holders and institutional investors.,Market analysts attribute Bitcoin price rapid appreciation to a combination of rising demand and a limited supply. According to Matt Hougan, Bitcoin’s long-term holders are now less inclined to sell, creating a scarcity that drives up prices.,The post-2024 Bitcoin halving, which reduced the new supply of Bitcoin entering the market, has amplified this scarcity effect. Industry experts argue that each halving cycle tends to create a supply shock, as seen in previous bull markets following halvings in 2020, 2016, and 2012.,

,Jesse Myers, a Bitcoin analyst, noted that “there’s not enough supply available at current prices to satisfy demand,” suggesting that the recent price gains could continue as demand outpaces available supply.,The introduction of Bitcoin Exchange-Traded Funds (ETFs) has further fueled the rally, as institutional investors increasingly allocate capital to Bitcoin. On November 11, total spot Bitcoin ETF trading volume exceeded $6.9 billion, indicating heightened institutional interest.,The launch of Bitcoin ETFs has provided a regulated avenue for investment, attracting new participants to the market. Additionally, Polymarket, a popular prediction platform, showed a sharp increase in bets on Bitcoin reachinag $100,000 before year-end.,As of November 11, the probability of Bitcoin breaking this threshold reached 57%, with total trading volume on this prediction surpassing $2.6 million.,Bitcoin’s current rally is also driven by favorable macroeconomic conditions. As central banks, including the Federal Reserve and European Central Bank, signal potential rate cuts, the market anticipates a more inflationary environment.,Bitwise CIO Matt Hougan pointed out that “global rate cuts” and “economic stimulus in China” are supporting conditions for Bitcoin’s price increase. Additionally, the U.S. presidential election result by Donald Trump win has injected optimism among Bitcoin proponents, with speculation around a potentially more Bitcoin-friendly administration adding to the rally’s momentum.,Other prominent figures, such as Max Keiser, a senior Bitcoin advisor to El Salvador’s government, have speculated that the geopolitical climate could further benefit Bitcoin. Keiser suggested that some Middle Eastern countries and even the Trump campaign may be considering substantial Bitcoin purchases, though these claims remain speculative. For the US, the Bitcoin Reserve, despite facing criticism earlier today has been one of the promises of Trump to the crypto community.,As Bitcoin’s price climbs, sentiment among investors and analysts appears to be shifting toward higher price targets. Tyler Winklevoss, co-founder of Gemini, remarked that Bitcoin’s recent appreciation “gives a glimpse” into potential future growth, linking it to broader economic trends.,Crypto analyst Willy Woo highlighted inflows into the Bitcoin network reaching an average of $1.7 billion per day, suggesting strong buying activity.,

,The rapid price surge has triggered profit-taking among some investors, as data from Santiment indicates an increase in transactions aimed at capturing gains. However, the majority of investors appear to be holding on, signaling confidence in further gains.,Bitwise CIO Matt Hougan and other industry experts believe that Bitcoin’s current trajectory could pave the way for a six-figure valuation and, potentially, a longer-term path to $1 million per Bitcoin.,