TL;DR
Matt Hougan, CIO of Bitwise, predicts that the price of Bitcoin will reach six-figure numbers due to whale accumulation, which acquired 60,000 BTC in 24 hours.
The demand for Bitcoin ETFs in the U.S. has recorded over $20 billion in net inflows in less than ten months.
Political attention towards BTC and various economic factors could drive its price.
Bitwise CIO Matt Hougan has expressed his optimism that the price of Bitcoin could reach six-figure numbers, supporting his prediction with several factors influencing the market.
One of the most important elements is the accumulation of BTC by large investors, known as whales, who acquired a total of 60,000 BTC in just 24 hours. This unusually high level of buying indicates strong interest and high confidence in Bitcoin’s price potential.
We're heading to six-figure bitcoin.
* ETF flows reaccelerating
* Election approaching
* Infinite deficits (bipartisan agreement!)
* Economic stimulus in China
* Global rate cuts (Fed, ECB)
* Halving supply shock starting to bite
* Whales accumulating
— Matt Hougan (@Matt_Hougan) October 18, 2024
The increasing demand for Bitcoin exchange-traded funds (ETFs) also plays a crucial role in the rise of institutional investment in the cryptocurrency. In less than ten months, BTC ETFs in the United States have registered over $20 billion in net inflows, a growth that surpasses the time it took gold ETFs to reach similar figures. There is a shift in the perception of BTC as a viable investment option, which could boost its market valuation.
Politics, Economics, and ETFs: The Catalysts for Bitcoin
Additionally, the political context in the United States could also be very positive for Bitcoin. The upcoming presidential election is attracting attention to the crypto industry. Candidates Donald Trump and Kamala Harris have shown supportive stances towards the sector. Analysts believe that regardless of who wins the presidency, BTC could benefit from the political and media attention it receives due to the elections.
From an economic perspective, factors such as the increasing national debt in the United States, stimulus measures implemented by China, and adjustments in global monetary policies, including changes in interest rates, could contribute to the rise in BTC’s price.
Recently, the European Central Bank (ECB) announced a 25 basis point rate cut, a decision that follows the Federal Reserve’s aggressive rate-cutting policy last month. This economic environment, characterized by a more flexible monetary policy, could favor investment in assets like Bitcoin
