Bitwise's Bitcoin Prediction: Gold Dynamics Stand Out

Cryptocurrency investors are closely monitoring Bitcoin's (BTC) future in light of new data. According to Bitwise Chief Investment Officer Matt Hougan, gold’s significant rise by 2025 could play an important signaling role for Bitcoin. The approximately 57% value increase of gold this year provides some clues about Bitcoin's next major price movement.

Hougan notes that one of the main reasons behind gold's rise is the aggressive buying strategies of central banks since 2022. In contrast, as there hasn't been a similar structure on the Bitcoin side, the performance gap between gold and Bitcoin is becoming apparent. “When central banks began purchasing gold, many investors who reacted to the price increase sold. However, when those sellers exited the market, prices quickly rose,” Hougan emphasized, stating that this dynamic could also apply to Bitcoin.

Spot Bitcoin ETFs and institutional purchases could also have an impact on Bitcoin. Hougan stated that since the beginning of 2024, spot Bitcoin ETFs and corporate treasuries have purchased approximately 1.39 million Bitcoin. He pointed out that these purchases are significantly more than the new supply, saying, "Theoretically, this difference should push the price up. However, the price is currently constrained due to the large number of sellers in the market. A significant portion of these sellers has now exited the market, and we could be approaching a potential breakout point.”

Despite a recent liquidation wave valued at 19 billion dollars, it's worth noting that net inflows into Bitcoin ETFs continue. According to The Block data, there was a 477 million dollar net inflow into ETFs last Tuesday. However, during this period, Bitcoin experienced a weekly loss of 4%, dropping to a price level below 108 thousand dollars.

Matt Hougan reminded investors to be patient, stating, "Instead of envying gold's parabolic rise, draw inspiration from it. Bitcoin can follow a similar path." Bitwise maintains a 200 thousand dollar year-end target; it is indicated that Bitcoin needs to increase by approximately 85% from its current price to reach this level.