The chief investment officer (CIO) of crypto asset management firm Bitwise, Matt Hougan, says one catalyst could suddenly send Bitcoin (BTC) to astronomical levels.
In a new interview on The Wolf of All Streets YouTube channel, Hougan says that if the US government ever started buying more Bitcoin, the flagship crypto asset may suddenly double in value.
[adinserter block="1"]The US government has not committed to proactively buying Bitcoin at this time, although there are proposals in Congress that aim to make this happen.
“Everyone is 100% skeptical that the US will buy more Bitcoin, and I think the chance is probably greater than zero. It may be low, it may be 10%, it may be 15%, it may be 20%, but I think the market has priced it at zero. A question I get at conferences a lot is what could cause the price to go just haywire up and to the right. This is one of the things where you could see an announcement and the price could double…
The Trump administration has shown that the chance of anything being zero is zero… There’s some small chance that we’ll see something like that. I don’t think so, but there’s a chance.”
Hougan also says that there are other sources of capital that may start flowing into Bitcoin that are likely to send its value higher, including the recent decision to start allowing 401(k)s to invest in crypto pending new regulations issued by the federal Department of Labor.
“It’s going to happen slowly. That [401(k)] market is slow-moving, but it’s going to happen eventually. It’s going to happen in 529 plans, people saving for their kids’ college are going to want some percentage in Bitcoin. And all of that is going to crush volatility…
It just means price up. It means more inflows in.”
Bitcoin is trading for $108,622 at time of writing, down 3.7% in the last 24 hours.
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