Bitcoin to crush gold and reach $1 million by 2029, says fund manager

Matt Hougan (CIO of Bitwise Asset Management) delivered an impressive long-term Bitcoin forecast on the Coinstories Podcast. Hougan explained to host Nathalie Brunoll why he thinks that BTC not only will disrupt gold, but it could also reach $1,000,000 per coin in 2029. This bullish prediction was attributed to rapid institution adoption, regulatory clarity emerging, and long-term persistent demand exceeding new supply.

Bitcoin could reach $1 million by 2029

When the interviewHougan described the surge in spot Bitcoin ETFs as the primary reason behind institutional flows. He said the rise in new capital after the ETFs Launched in January 2024, the launch was much larger than analysts expected. “Before the Bitcoin ETFs launched, the most successful ETF of all time gathered $5 billion dollars in its first year,” He said. “These [Bitcoin] ETFs did thirty-seven billion.”

The astonishing inflows of refugees could be expected to continue. “fewer than half of all financial advisers in the US can even have a proactive conversation” About investing in Bitcoin right now. He expects a bigger inflow of assets once restrictions are removed and advisers can recommend Bitcoins to clients.

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Hougan’s response to the question of whether there is competition between top ETF providers was that BlackRock’s entry The overall industry benefits by increasing participation. His firm Bitwise focuses both on institutional investors as well as crypto experts who are looking for a “crypto native” manager.

Hougan believes that Bitwise’s Bitcoin ETF spot launched along with several prominent competitors, but he views the fierce competition for investors as a good thing, since it has reduced fees. “rock bottom.” His firm has lower management fees than many other traditional ETFs. “It’s an incredible deal for the investor.”

Hougan was also quick to draw attention to the explosive growth of stablecoins. He called stablecoins a “killer app,” Stablecoins that settle on Blockchains can help improve international money flow.

He expects that the stablecoin industry will reach trillions of dollars in the next few years, particularly if regulatory frameworks are supportive. He acknowledged that legislation in the United States could influence whether stablecoin holders hold long or short-dated Treasury bonds, but expressed the hope that the marketplace would be free to encourage continued innovation and competition.

Hougan also spoke about the increasing corporate interest in the area, but said that it faces obstacles such as “weird accounting rules,” But has nevertheless proven to be robust. He emphasized how companies are a good example. “bought hundreds of thousands of Bitcoin last year” The company believes that these early adopters are a sign of a larger wave coming once the accounting and due diligence issues have been resolved.

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His firm’s private surveys, he said, reveal a striking gap between advisers’ personal enthusiasm for Bitcoin—where “over 50%” already hold it themselves—and the roughly 15–20% who can formally allocate it on behalf of client portfolios. This number is expected to continue rising, as the internal committees of institutions give their approval and more realize this. “if you have a zero percent allocation to crypto, you’re effectively short.”

Washington Factor and Regulatory Changes

Hougan stressed throughout the interview that while the market might be “underpricing the change in Washington.” He was able to recall how until recently banks refused to make deposits with crypto companies. Subpoenas were issued, there were lawsuits filed, and the risks of being sued. “being debanked” It had a chilling impact on the growth of industry.

Hougan is of the opinion that “unless you worked in crypto over the last four years, you can’t imagine how challenging it was,” It is also important to note that the government’s new softer position has removed an immense obstacle from capital inflows. The bipartisan backing for the stablecoin bill is also a strong sign that regulatory clarity will be on its way.

Hougan claimed that Bitcoin would flourish if it were not regulated. macroeconomic climate There is uncertainty. He cited either runaway inflation, or an abrupt deflationary crash as scenarios that people are afraid of. “if you look at the market, it’s more volatile or open or uncertain than it has been in the past.”

According to him, even a modest allocation of bitcoin can provide a hedge that is not sovereign against potential financial or fiscal turmoil. He said that many of Bitwise’s large clients are looking into methods of generating yield on their Bitcoin—whether through derivatives or institutional lending—so they can maintain exposure without selling the asset itself. This interest, according to him, is a reflection of the conviction that characterizes the crypto community.

Hougan concluded that the limited supply of Bitcoin and increasing institutional demand were driving forces behind its price. He said that Bitcoin’s finite schedule of issuance, along with the new buyers far outnumbering new bitcoins mined, would likely continue to push the price up in the future. “I think Bitcoin is well on its way to disrupting gold,” He said. “We think it’s going to cross a million dollars by 2029.” He said that although day-today fluctuations in prices can be drastic, the fundamentals on a long-term basis remain solid.

BTC was trading at $84,138 as of the time this article went to press.

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