Bitcoin Could Soar to $50 Trillion, Says Bitwise CIO Matt Hougan

Bitcoin's Long-Term Outlook Remains Bullish

Despite Bitcoin's recent price downturn, Bitwise CIO Matt Hougan remains optimistic about its future. He predicts that Bitcoin's valuation could skyrocket to between $10 trillion and $50 trillion in the long term. This projection is based on the assumption that multiple nations will add Bitcoin to their strategic reserves, while sovereign wealth funds increasingly allocate capital to the digital asset.

Current Price Decline Explained

Bitcoin's price has faced a steady decline in 2025, even after the U.S. government announced the creation of a Strategic Bitcoin Reserve (SBR), a historic milestone for the asset. Hougan attributes the current dip to external economic concerns and broader macroeconomic factors, such as trade tariffs between the U.S. and other countries. Additionally, many crypto investors were disappointed by the government's decision not to immediately purchase more Bitcoin. Instead, the SBR will initially be funded with forfeited assets already in federal custody.

Bitcoin's Role in Global Markets

Hougan believes Bitcoin’s future remains bright, arguing that most investors are focusing on the wrong metrics. He suggests that the market is significantly underestimating the likelihood of the U.S. government expanding its Bitcoin holdings in the near future. If Bitcoin achieves this status, its valuation could climb to between $10 trillion and $50 trillion.

Risks and Challenges

However, if Bitcoin fails to achieve geopolitical relevance, its price may struggle to exceed $150,000, remaining primarily supported by cypherpunks, libertarians, and speculators.

Conclusion

Hougan dismisses Bitcoin’s short-term volatility as mere noise, arguing that the establishment of the U.S. Strategic Bitcoin Reserve has already boosted its global relevance. He believes this move will encourage other countries to accumulate Bitcoin, further solidifying its potential to become a $10-$50 trillion asset—implying a 5x to 25x return from its current price.