Bitwise Chief Investment Officer Mark Hougan has unveiled multiple reasons why Bitcoin (BTC) is poised to soon attain a six-figure value. This prediction comes as Bitcoin may have successfully recaptured the “Uptober” spirit following an 8.14% gain in the past week.
Bitcoin ETFs, US Elections Key To 6-Figure Price Dream, Hougan Says
In a recent X post, Mark Hougan shared seven factors that may drive Bitcoin to reach the $100,000 price mark. First, the analyst highlighted that interest in the spot Bitcoin ETFs has begun picking up again evidenced by the $2.18 billion inflows recorded in the last week. This development is quite important as a rise in Bitcoin ETF flows represents heightened institutional interest, which translates into increased demand and price rise for BTC.
Furthermore, Mark Hougan also notes the upcoming US elections as another significant influence in the BTC market. Unlike previous electoral cycles, Republican presidential candidate Donald Trump has emerged as a pro-crypto candidate who has found favor with many digital assets enthusiasts. A victory by the former President will be interpreted as a strong bullish signal as many crypto investors will now expect a more embracing approach from the US government.
Another factor discussed by the Bitwise CIO is the ongoing economic stimulus program in China, which analysts believe will avail Chinese investors liquidity to purchase risky assets such as Bitcoin, likely through exchanges in Hong Kong. A similar effect of increased liquidity for cryptocurrency investment is also expected from the highly anticipated interest rate cuts by the US Federal Reserve over the next few months.
Mark Hougan also mentions the indefinite deficits by the US government which causes concerns over the long-term value of the US dollar, and encourages investments in assets like BTC which are termed inflation-proof.
BTC Accumulation On The Rise As Supply Shock Sets In
In addition to the factors listed above, Mark Hougan points to the aggressive accumulation behavior by Bitcoin whales as another bullish force in the token’s potential ascent to a six-figure value. For context, recent data from CryptoQuant show that whales have purchased over 1.5 million Bitcoin, valued at $102.49 billion, in the last six months, indicating strong confidence in the long-term returns of the asset.
This trend is particularly important as the impact of Bitcoin supply shock from its halving in April is expected to materialize in Q4 2024. Therefore, there is likely to be a rising demand-to-supply ratio, which will fuel further price gains. At the time of writing, BTC trades at $68,164 with a 0.46% decline in the last day. Notably, the asset’s daily trading volume is down by 60.44% and valued at $14.73 billion.
