Bitwise CIO Sees Bitcoin Reaching $250k-$400k in Next Bull Market

Bitwise Chief Investment Officer Matt Hougan predicts that Bitcoin (BTC) could reach between $250,000 and $400,000 during its next bull market. He attributes this potential surge to growing institutional adoption and the expansion of decentralized finance.

Hougan notes that current market conditions are a 'bottoming phase' characterized by collapsing leverage, declining funding rates, and normalizing ETF flows. This, he says, marks a shift in market structure, as evidenced by Bitcoin's resilience against negative news, including Strategy Inc.'s sale of its Bitcoin holdings.

Unlike previous cycles driven by retail speculation, Hougan expects the next bull market to be fueled by institutional capital entering digital assets through wealth management platforms. Major financial firms like Wells Fargo and UBS are steadily expanding their crypto offerings, a trend he anticipates will accelerate in the second half of the year.