According to Bitwise CIO Matt Hougan, Bitcoin does not need a crash of the U.S. dollar to reach six-figure status. While Bitcoin has often been considered a hedge against the declining value of the dollar and a potential beneficiary of a fiat currency collapse, Hougan believes that these assumptions are incorrect. He argues that there are two main reasons why Bitcoin can reach $200,000 per BTC and beyond without a dollar collapse.
Firstly, there is a growing demand for store-of-value assets. Investors are increasingly turning to Bitcoin as a way to protect their wealth, especially as governments continue to abuse their currencies. For example, the United States has seen a significant increase in spending and its national debt has exceeded $35 trillion. The national debt is estimated to grow by $1 trillion every 100 days at the current rate. This has led to a loss of confidence in traditional bailout mechanisms like U.S. Treasuries, which could further support the adoption of Bitcoin.
Secondly, persistent government spending reinforces investor conviction in Bitcoin. As governments continue to spend recklessly, it is expected that Bitcoin will become more mature, with increased adoption and higher prices. Hougan predicts that this trend will continue, leading to a more established Bitcoin market and further price growth for the leading cryptocurrency.
Hougan made these remarks on October 29, when Bitcoin was rallying close to its all-time high. Bitcoin rose by 5% in the last 24 hours, reaching $72,756. While technical indicators suggest a potential breakout, historical patterns indicate that there may be volatility as the U.S. presidential election approaches.
In conclusion, Hougan believes that Bitcoin can reach six-figure status without a U.S. dollar crash. The growing demand for store-of-value assets and persistent government spending are key factors that reinforce investor conviction in Bitcoin and support its potential for further price growth.