Bitcoin hits all-time high, surpassing $111,000
Evaluating the dynamics behind this historic rise, Bitwise Asset Management’s Investment Director Matt Hougan stated that the rally has just begun and is a harbinger of a long-term rise.
According to Hougan, Bitcoin’s rise is driven by two key factors: the increasing interest of institutional investors in the market and indirect support from the US government.
“More than $8 billion has flowed into Bitcoin ETFs in the last 30 days. This means new demand against fixed supply and pushes prices up,” Hougan said, adding that the government’s increasing budget deficits and money printing policies have also pushed investors away from fiat currencies, which has increased their focus on Bitcoin.
Hougan said the rise in long-term government bonds and developments in markets such as Japan suggested investors were losing appetite for borrowing. “The U.S. government is no longer serious about budget cuts. That calls into question the long-term value of the dollar,” he said.
Hougan also touched on why this strong performance of Bitcoin was not seen in altcoins, saying that Bitcoin is in a different position as “digital gold.” He said, “Cryptocurrencies such as Ethereum and Solana should be evaluated more like technology investments,” and stated that it is natural for these assets to perform differently than Bitcoin.
Hougan predicts that Bitcoin will reach new records in the coming period.
*This is not investment advice.
