Bitcoin (BTC) Poised for a Significant Rally to a 'Six-Figure” Price, Says Bitwise CIO Matt Hougan

Bitwise CIO Matt Hougan said Bitcoin (BTC) is poised for a significant rally to a “six-figure” price amid a convergence of several key factors

Bitcoin (BTC) price is poised for a significant rally to a “six-figure” price amid a convergence of several key factors driving investor enthusiasm, according to Bitwise CIO Matt Hougan.

In a social media post on Oct. 18, Hougan highlighted a surge in exchange-traded fund (ETF) flows, heightened by a reacceleration of investments into Bitcoin-based financial products amid growing institutional interest in digital assets.

“US spot Bitcoin ETFs now have $20 billion in net flows, out of $65 billion in the broader Bitcoin ETF sector, which took off in less than a year,” said Hougan, adding:

“For comparison, it took six years for the gold ETFs to reach $20 billion in net flows. Appetites are shifting.”

Hougan’s comments come as recent data showed that United States spot Bitcoin ETFs have now surpassed $20 billion in net flows. Meanwhile, the broader Bitcoin ETF sector is now managing over $65 billion in assets.

As previously reported by CryptoSlate, the rapid growth in Bitcoin ETFs has far outpaced traditional asset-tracking ETFs like gold, which took six years to reach similar levels.

According to Hougan, the growing appetite for Bitcoin ETFs signals a shift in market sentiment, especially as institutional players are seeking exposure to digital assets.

“Bitcoin ETFs now have more net flows than any other asset class, including gold, Tesla, and the S&P 500,” he noted. “Institutions are piling into BTC.”

Hougan, along with other industry analysts, also pointed to next year’s U.S. presidential elections as a potential catalyst for Bitcoin's price.

Former President Donald Trump has taken the lead in on-chain betting polls, which has added to speculation that the political landscape could further drive Bitcoin adoption due to his vocal support for the industry.

Additionally, Hougan highlighted bipartisan agreements on escalating fiscal deficits, dubbing them “infinite deficits.” The agreements would continue a loose fiscal policy that could weaken fiat currencies, making Bitcoin's deflationary nature more attractive to investors.

“Bipartisan agreement on ‘infinite deficits,'” said Hougan. “Stimulus in China. Rate cuts from the Fed and ECB.”

Meanwhile, economic stimulus measures in China, combined with global interest rate cuts by both the Federal Reserve and the European Central Bank, are expected to further fuel demand for Bitcoin, as low-interest-rate environments encourage risk-on behavior in financial markets.

Hougan also noted that the post-halving supply shock is “starting to bite” as whales and ETFs continue to accumulate Bitcoin. On-data shows that large Bitcoin holders have been accumulating at unprecedented rates, with whale wallets now controlling 9.3% of the total supply.

“The post-halving supply shock is starting to bite,” said Hougan. “Whale realized cost basis is now $23,000.”

On Oct. 6, CryptoQuant data revealed that new Bitcoin whales have invested nearly $108 billion, marking a 13x increase this year. These new whales now account for 48.8% of Bitcoin’s total realized cap.

This amount is the highest these investors have ever spent, coming close to the $113 billion held by “old whales.” The surge in new whale participation is being seen as a “generational shift.”

Their realized cap is also set to soon surpass that of older whales, according to the data. Realized cap, which measures the value of each Bitcoin based on its last transaction price, is used to assess the value stored in Bitcoin.

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