Bitcoin's New Era: It's Time to Increase Your Investments

Strategic Shift Towards Bitcoin 🌟

Bitcoin deserves larger investment allocations as it transitions into a new phase. Bitwise investment manager Matt Hougan stated on November 4, "Bitcoin's sideways movement indicates that the IPO moment has arrived." This situation implies that larger investment allocations are coming to the forefront.

Hougan referred to the recent writings of Jordi Visser, the senior managing director of 22V Research. Visser noted that despite positive developments, Bitcoin's sideways movement resembles that of an IPO. Early investors are realizing their profits and diversifying. He expressed that this distribution is reflected in the sideways movements of market prices and that it could take a few more months for sellers to exhaust.

Based on Visser's thoughts, Hougan emphasized that Bitcoin has become "significantly less risky." He pointed out that Bitcoin has transitioned to institutional investors like companies after many IPOs, stating that this risk reduction is evident from the decrease in market volatility. The significant reduction in volatility was particularly noted following the launch of spot BTC ETFs in January 2024.

According to Hougan, the days of a 1% allocation for Bitcoin are now behind. While many leading financial institutions still suggest a 1% Bitcoin allocation as a fundamental recommendation, Hougan stated that "investors should consider 5% as a starting point." He highlighted this change as already in motion, citing hundreds of meetings that Bitwise has conducted with advisors, institutions, and other professional investors over the past few months.

"Bitcoin is experiencing its IPO moment. If history is used as a guide, we should celebrate making more purchases," he added. Bitwise predicts that Bitcoin will reach the level of 1.3 million dollars by 2035, while it was noted that this forecast could be cautious. Hougan pointed out the necessity for firms to continuously innovate for value appreciation post-IPO, mentioning that Bitcoin could increase its 25 trillion dollars value with widespread adoption, evaluated in terms of gold's value.

Currently, Bitcoin is trading at 102,000 dollars. Bitwise expects the asset to reach 200,000 dollars by the end of the year.