Bitwise Chief Investment Officer Matt Hougan has shared three factors he believes could help Bitcoin price soar this year and beyond. 

This came in a recent interview on the Unchained podcast, “Bitcoin to $200K+ This Year,” in which he highlighted major entities expected to accumulate BTC.

3 Big Bitcoin Buyers Over the Next Year

According to Hougan, governments will purchase hundreds of thousands of BTC tokens in the coming year. He suggests that this large-scale buying will become a significant driver of Bitcoin’s price growth. 

Additionally, corporations are also expected to increase their Bitcoin purchases. In 2024, corporations acquired approximately 350,000 Bitcoin, and Hougan believes this figure will rise in 2025. Hundreds of companies will likely follow the trend, contributing to an ongoing institutional push toward Bitcoin adoption.

Notably, Hougan points to institutional investors recognizing Bitcoin as a crucial component of global capital markets. He asserts that failing to hold Bitcoin could position investors as being “short” against the benchmark of global capital markets. This growing recognition, he believes, will lead to hundreds of billions of dollars flowing into Bitcoin to align with market expectations.

Structural Demand vs. Limited Supply

As demand for Bitcoin increases, Hougan notes that the crypto’s limited supply will become a key factor in driving its price upwards. He highlights that only 165,000 new Bitcoins are mined each year, while demand has been far outpacing this supply.

In 2024, Bitcoin exchange-traded funds (ETFs) alone purchased half a million BTC, while corporations bought 350,000. This imbalance between supply and demand could push prices even higher.

Hougan points out that when Bitcoin prices surged from $72,000 to $100,000 in 2024, existing holders sold off their positions. He predicts similar behavior could occur once Bitcoin reaches new price milestones, particularly at $200,000.

He argues that this price level is where many holders may be inclined to sell, driven by both market psychology and behavioral tendencies.

Views From Industry Experts

While Hougan’s forecast for Bitcoin’s price is optimistic, other analysts remain more cautious. Peter Brandt, a seasoned trader, has expressed skepticism regarding Bitcoin surpassing the $200,000 mark by the end of the decade.

He cites technical barriers that may prevent Bitcoin from achieving this target, although he acknowledges that his analysis is speculative.

Meanwhile, analysts from Bernstein maintain a more bullish outlook. They reaffirm their prediction that Bitcoin will reach $200,000 by the end of 2025.

Bernstein’s confidence is rooted in several factors that they believe will propel Bitcoin’s value in the coming years. The firm first issued this $200,000 target in June 2024 and has continued to stand by it, citing the growing adoption of Bitcoin.