Bitcoin Could Hit $1 Million as Gold's Rival, Bitwise CIO Predicts

Bitcoin could one day hit a price of $1 million, according to Matt Hougan, Chief Investment Officer of Bitwise Invest. His prediction relies on Bitcoin capturing a larger share of the global store-of-value market, currently dominated by assets like gold. Hougan argues that even cautious estimates support this ambitious target over time.

Hougan's analysis centres on the $38 trillion store-of-value market, where gold remains the leading asset. For Bitcoin to reach $1 million, it would need to claim roughly half of this market—up from its current 4% share. He suggests that central banks' recent gold purchases, driven by geopolitical tensions like the Ukraine war, have temporarily overshadowed Bitcoin's potential.

The CIO also believes the ongoing 'crypto winter' may end sooner than expected. Institutional investors, he argues, will likely fuel a more gradual but stable bull market in the coming years. If Bitcoin secures a 17% share of a projected $121 trillion store-of-value market within a decade, Hougan sees the $1 million price as entirely feasible. Bitwise Invest, managing around $15 billion in assets, has positioned itself strongly in the crypto space. Its Bitcoin spot ETF (BITB) ranks as the fifth-largest, reflecting growing institutional interest. Hougan currently views Bitcoin's price levels as an attractive entry point for those who buy into his long-term forecast. Meanwhile, tokenised gold has recently reached a $5.4 billion market capitalisation, with gold trading at $5,602 per ounce. Analysts, including those at JPMorgan, continue to favour Bitcoin over gold for long-term value, setting Bitcoin price targets as high as $266,000.

Hougan's projections hinge on Bitcoin's ability to compete with traditional safe-haven assets. If institutional adoption accelerates and the store-of-value market expands as predicted, his $1 million target could become a reality. For now, Bitcoin's performance remains tied to broader economic shifts and investor sentiment.