Despite being volatile, Bitcoin, the leading cryptocurrency asset, is still believed to hit a whopping $1 million value in the upcoming years. After a period of quiet, a Bitwise executive has reignited discussion regarding this matter after predicting that the asset hitting this level is not as crazy as it seems. Institutional Case For $1 Million Bitcoin Grows A popular Bitcoin discussion has been rekindled in the community, and it appears to be taking the spotlight. Matt Hougan , the Chief Information Officer (CIO) of Bitwise, has predicted that the flagship crypto asset could reach the $1 million milestone, a forecast akin to several predictions from major corporate firms. As reported by Milk Road, a macro analyst and crypto investor, the Bitwise CIO made this audacious forecast in a recently published memo. In the memo, the $1 million per Bitcoin estimate is far from the kind of inflated “moonboy” forecast frequently associated with cryptocurrency mania. According to Hougan, this thesis is a simple math rather than a moonboy take. The executive claims that most people are getting this thesis wrong by evaluating BTC against a static market. In a market that has been compounding for 20 years, applying a static value is likely to be unsuccessful. However, because the market is weak , most participants are content to do so at the moment. Instead of characterizing the goal as speculative optimism, Hougan describes how the flow of capital into Bitcoin is gradually changing its long-term perspective. Currently, there is around $38 trillion in the global store-of-value market, which is the pool of money invested in hard assets like gold and real estate with the express purpose of preserving wealth. Meanwhile, BTC controls a share of 4%, valued at around $1.4 trillion, and that market does not sit still. Over the past 20 years, increased debt, lax monetary policy, and geopolitical tensions have caused gold to rise from $2.5 trillion to $40 trillion. Today, each one of these tailwinds is still active across the broader financial sector. If the store-of-value market compounds at its average yearly rate of 13%, Milk Road predicts a surge to $121 trillion in the next decade. As a result, Bitcoin needs to grow from 4% to 17% of that market value to reach the $1 million level. “That’s the whole argument, and the momentum is real,” Milk Road added. Adoption Is Set To Play A Part During the process, institutional adoption is likely to play a crucial role in BTC’s journey to the $1 million mark. Milk Road highlighted that institutional adoption is not coming; it is already here, which is indicated by the record inflows into the US Spot Bitcoin ETFs . Other indications include the decline in BTC’s volatility, Harvard’s endowment owning BTC, and Abu Dhabi’s Mubadala sovereign wealth fund purchasing it. After analyzing Hougan’s thesis, Milk Road noted that the executive is being transparent about the risks involved. If the store-of-value market loses steam or Bitcoin does not capture the expected share, the math fails. Therefore, there is no guarantee of the thesis.
