Introduction to Bitwise CIO’s Prediction
Bitwise CIO Matt Hougan has made a bold prediction about the future of Bitcoin, stating that it will go parabolic in the long term. This prediction is based on the idea that Bitcoin will mimic the explosive price move of gold, a commodity that has historically been a store of value. Hougan’s prediction is significant, as it suggests that Bitcoin could potentially experience a massive surge in price, similar to what was seen in the 2017 bull run.
The Role of ETFs in Bitcoin’s Price Move
According to Hougan, the key to Bitcoin’s potential parabolic move is the retention of demand for Bitcoin ETFs (Exchange-Traded Funds). ETFs are investment funds that are traded on a stock exchange, like individual stocks. They allow investors to buy into a fund that tracks the price of Bitcoin, without having to directly hold the cryptocurrency. If demand for these ETFs remains strong, it could lead to a significant increase in the price of Bitcoin, as more investors become interested in the asset.
Comparison to Gold’s Price Move
Hougan’s prediction is based on the idea that Bitcoin will follow a similar price trajectory to gold. Gold has historically been a store of value, and its price has increased significantly over the years. If Bitcoin is able to establish itself as a similar store of value, it could potentially experience a similar price move. This would be driven by increasing demand from investors, as well as limited supply, which would drive up the price of the asset.
Read Also Epochs
