Bitcoin Can Still Hit $100,000 This Year, Bitwise Asset Management CIO Says

Bitcoin, which hit an all-time high of $73,000 before the halving in April, has plunged below $60,000 and has been struggling in recent weeks to hold the green line

Bitcoin price hit a new low on Friday, slipping below the $58,000 level as the world’s largest cryptocurrency continued to struggle to hold the green line in recent weeks. However, an industry analyst still believes that BTC could reach $100,000 in the second half of the year.

The cryptocurrency market has seen nothing but bad news in recent days, with the latest being the German government’s massive sell-off of Bitcoin. However, many industry experts, such as Bitwise Asset Management CIO Matt Hougan, have been urging digital asset holders to look at the “long-term” potential.

“I think it's safe to say the crypto market is presenting a weird dynamic right now,” Hougan wrote in a note on Wednesday.

He highlighted the current “dichotomy” within the market, which is creating a huge potential opportunity for long-term investors in cryptocurrencies.

“I have never seen a better long-term setup for crypto than right now,” the CIO added.

Bitcoin price set up for second-half rally to $100,000

The crypto market has seen a shifting tone in Washington regarding the crypto industry, Hougan noted.

In addition to the passage of an increasingly bipartisan resolution that aimed to establish a regulatory framework for crypto, the apparent reversal among Republicans is a major game-changer.

Earlier this week, the Republican Party unveiled its 2024 Platform, which saw crypto coming out on top among other innovation priorities that GOP candidates would like to prioritize in the lead-up to the November elections.

The platform highlighted the importance of cryptocurrencies in promoting financial freedom and encouraging innovation, while also emphasizing the need for "sensible regulation."

Inflows into spot Bitcoin exchange-traded funds (ETFs) have been “extraordinary,” Hougan wrote.

The funds have already hauled in about $15 billion in net new assets since launching in January. However, the Bitwise CIO believes “they're just getting started.”

Once the ETFs are approved for mainstream use – for instance, Wells Fargo and Morgan Stanley – the market will likely see billions more in positive flows, he projected.

While pessimism across the market did have a negative impact on the ETFs, with the funds bleeding millions in the past weeks, they picked up again earlier this week with positive flows.

Instead of being affected by the German government’s massive sell-off, U.S. Bitcoin ETFs bought the dip to bring in nearly $295 million on Monday.

Bitcoin price begins second half of 2024

The world’s first decentralized cryptocurrency has just started trekking the second half of 2024, and for Hougan, there’s a lot of potential for the coin to surge and hit a new all-time high.

With strong growth among stablecoins, big developments in layer 2 blockchain projects, and the deeper dive of prominent institutions such as BlackRock into the Bitcoin craze, the digital currency is set up for second-half success.

“The right mix of developments in the second half of the year could easily drive Bitcoin to $100,000 and push Ethereum to new all-time highs,” Hougan noted.

At the time of writing, Bitcoin price was trading at $57,200, down from nearly hitting $60,000 on Thursday.