Bitwise CIO: If Bitcoin Captures Part of Gold and Sovereign Debt's Value Storage Market, It Could Reach $1 Million

BlockBeats News, March 15th. According to CoinDesk, Bitwise Chief Investment Officer Matt Hougan reiterated his $1 million price target for Bitcoin this week and pointed out in a new report that Bitcoin's long-term upside potential depends on the market share it can capture in the global store of value market.

Hougan stated that the global store of value market (including gold, government bonds, and other defensive assets) has expanded from about $2.5 trillion in 2004 to nearly $40 trillion today, with Bitcoin currently accounting for only about 4% of it. If Bitcoin could capture about half of that market under current conditions, its price could approach $1 million in about a decade. He admitted, "A $1 million price sounds crazy, implying that Bitcoin would need to increase another 14 times from its current price."

Many analysts agree with this direction but have different views on the timeline. Quantum Economics founder Mati Greenspan said, "Geopolitical tensions have strengthened Bitcoin's narrative, with investors seeking neutral value storage assets during uncertain times, and Bitcoin is increasingly being seen alongside gold in this category." However, he believes that achieving this goal may take a decade or more and depends on continued institutional adoption and regulatory clarity. Bitlease founder Nima Beni, on the other hand, believes that if confidence in traditional 'safe' assets collapses, such as in a sovereign debt crisis or a shock to the gold market, the timeline for Bitcoin reaching $1 million could be accelerated.