Bitwise CIO: ‘Too Much Demand, Not Enough Supply’ Could See Bitcoin Reach $200K This Year


The chief investment officer of Bitwise asserts that a “massive supply-demand dynamic” is responsible for the potential price spike of bitcoin beyond $200K this year, stressing that “there’s too much demand and not enough supply” for the digital currency. Because of spot bitcoin exchange-traded funds (ETFs), he predicted “an even bigger wave” of demand for the cryptocurrency, saying, “It’s in a new era of price discovery, and I think prices could go substantially higher from here.”

‘There’s an Even Bigger Wave Coming’

In an interview with CNBC on Thursday, Matt Hougan, the CIO of Bitwise Asset Management, discussed his prediction for bitcoin. One of the eleven spot bitcoin exchange-traded funds (ETFs) that the U.S. Securities and Exchange Commission (SEC) authorized in early January is Bitwise’s bitcoin ETF (BITB).

“We’re seeing enormous demand for the Bitwise Bitcoin ETF and across all these ETFs,” he shared. “You’re seeing retail investors come into these ETFs, you’re seeing hedge funds, you’re seeing RIAs [registered investment advisors] or independent financial advisors.” The chief investment officer added:

“I think there’s an even bigger wave coming in a few months as we start to see the major wirehouses turn on. But this has been Bitcoin’s IPO moment. It’s in a new era of price discovery and I think prices could go substantially higher from here.”

He clarified, saying, “These ETFs were not activated at the big wirehouses and significant institutions when they were originally introduced. Thus, consumers, independent financial advisers, and hedge funds are the main sources of early demand for each ETF. Thus, I believe it to be the main cause of what we’re witnessing.

The Bitwise CIO said that money is flooding into ETFs from institutional and individual investors alike, saying, “It’s just new demand.” Before the creation of ETFs, only a select group of investors could purchase bitcoin. Almost anybody can now purchase it. He continued: “The supply-demand dynamic is just off the hook.”

2024 Bitcoin Price Prediction

According to Hougan, Bitwise predicted in December of last year that “bitcoin would trade at new all-time highs above $80,000 a coin” in 2024. Still, he acknowledged:

“Based on what we’re seeing in our ETFs and these other ETFs, I think we have to revise that upward.” He opined:

“It could be $100,000. It could be $200,000. It could be higher than that. There’s simply this massive supply-demand dynamic going on.”

He reiterated that there is “a fixed supply and net new demand,” adding that there would actually be a fall in new supply in April due to the halving. The CEO said: “Investing may be complicated at times. Sometimes, it’s simple. Right now, supply and demand are the only factors affecting bitcoin; there is too much demand and not enough supply.

A $30 billion investing platform recently authorized four spot bitcoin exchange-traded funds (ETFs), Bitwise’s bitcoin fund among them. Following rumours that surfaced this week, Wells Fargo and Merrill Lynch of Bank of America have also started providing spot bitcoin ETFs to certain customers. Hunter Horsley, the CEO of Bitwise, stated last week that the price of bitcoin may reach $250,000 before most people think.

Author: Simeon

Simeon is a seasoned crypto writer with a passion for exploring the fascinating world of blockchain and digital currencies. With a background in finance and technology, Simeon brings a unique perspective to his writing, delving into the complexities of decentralized finance, cryptocurrency trading, and emerging blockchain projects.