Bitcoin heading to 6-figure price, Bitwise CIO says

The case for Bitcoin surpassing $100,000 has become even more compelling in recent weeks, according to Matt Hougan, Chief Investment Officer at Bitwise Asset Management. In a recent post on X, Hougan argued that Bitcoin’s path to a six-figure price is virtually assured, driven by a mix of institutional interest, macroeconomic factors, and on-chain developments.

One key indicator of this growing institutional interest is the surge in assets flowing into Bitcoin exchange-traded funds (ETFs). Eric Balchunas, an ETF expert at Bloomberg, highlighted that U.S. spot Bitcoin ETFs have now surpassed $20 billion in total net flows. The broader Bitcoin ETF complex has accumulated over $65 billion in assets under management, with $1.5 billion of new inflows just this week.

Balchunas pointed out that it took years for traditional asset ETFs, like those tracking gold, to reach such levels. In contrast, Bitcoin-related products achieved this milestone in just a year, underscoring strong and growing demand from both retail and institutional investors. This rapid adoption signals increasing confidence in Bitcoin’s long-term value proposition and its potential for further price appreciation.

Matt Hougan, alongside QCP Capital and other analysts, has identified the upcoming U.S. presidential elections as another potential catalyst for Bitcoin’s price growth. In particular, Donald Trump, a pro-Bitcoin candidate, has led several on-chain betting polls on platforms like Kalshi and Polymarket, where people speculate on political outcomes. This suggests that the political climate may play a role in driving further attention and investment toward Bitcoin.

Moreover, there’s growing optimism about Bitcoin’s price trajectory, regardless of which party wins the White House. This reflects a broader, bipartisan outlook where Bitcoin’s value could be influenced by economic factors and market sentiment, rather than just political control.

Bitcoin whale activity is another factor fueling bullish sentiment. Hougan pointed to significant accumulation by large Bitcoin holders, or whales, as a strong signal of confidence. Data from CryptoQuant confirms this trend, showing that whale wallets are accumulating Bitcoin at unprecedented rates. According to Ki Young Ju, founder of CryptoQuant, Bitcoin’s open interest hit an all-time high of $20 billion, and new whale wallets are now holding 9.3% of Bitcoin’s total supply. This increased whale participation suggests a long-term bullish outlook, as these large holders are typically less likely to sell in the short term, potentially tightening supply and pushing the price higher.

Taken together, these factors—political developments, institutional adoption, and strong whale activity—are contributing to the growing belief that Bitcoin is poised for significant price acceleration in the near future.

Liquidity is expected to flow into risk assets soon, including Bitcoin, due to seasonal trends, new stock highs, and global rate cuts by central banks like the Federal Reserve. Historically, Bitcoin has performed well in the fourth quarter, and a low-funding rate environment could further boost this trend.