Hougan shared three key factors for his bullish outlook. These stem from the US elections, large amounts of sidelined capital, and the long-term impact of Bitcoin ETFs. On the political front, Hougan argued that either a pro-crypto President, Donald Trump, or a neutral President, Kamala Harris, could have a positive—or at least non-negative—impact on Bitcoin.

US Presidential Election Winner Odds. Source: Polymarket

At the time of writing, Trump’s chances of becoming president reached 58.9%. Bitcoin prices have also surpassed $67,000, as investors believe that Trump will introduce policies that could drive significant market growth.

Moreover, Hougan revealed that many major investors have yet to enter the market. They are waiting for more political and regulatory clarity. However, if Bitcoin continues its upward trajectory, these investors may feel compelled to jump in sooner rather than later.

“The election represent uncertainty, and so investors are sitting on the sidelines, waiting. They realized that crypto is not going away. They realized that it’s moving into the institutional sort of part of the world, but they thought they could wait and delay. I think if this rally continues, if [Bitcoin] trips up towards $70,000, then, it becomes a self-fulfilling prophecy. People would realize they have to get on the train.” Hougan said.

Additionally, Hougan also emphasized the long-term potential of Bitcoin ETFs. As a former CEO of ETF.com, he believes the $20 billion inflow in the first year of Bitcoin ETFs represents a major success. Similar to gold ETFs, Bitcoin ETFs are still in their early stages.

Bitcoin ETF vs Gold ETF. Source: Bastion Trading

The latest data shows that, despite being in existence for less than a year, Bitcoin ETFs’ Assets Under Management (AUM) are already over 52% of that of Gold ETFs.

“Before I came to Bitwise six and a half years ago, I was the CEO of etf.com, so this is my neck of the woods. The thing that crypto should realize about ETFs is that they are multi-year stories. If you look back at the Gold ETF, which launched the most successful ETF launch of all time…I think the same thing is going to happen for Bitcoin ETFs. We’re still really at the earliest stage.” Hougan said.

When asked about his Bitcoin price forecast, Hougan predicted that BTC would reach a new all-time high by the end of the year. Moreover, he affirmed that Bitcoin could hit $200,000 in 2025.

Hougan is also optimistic about Ethereum. He says that while it is currently undervalued due to the rise of competing blockchains, it remains the top platform for DeFi applications, stablecoins, and tokenization. With regulatory and technological advancements, Ethereum could also set a new record high by 2025.

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