Bitcoin Could Hit $500,000 If the US Creates a National Reserve, Bitwise CIO Matt Hougan Predicted

The establishment of a bitcoin national reserve could vault the price of the cryptocurrency to as high as half a million dollars, the CIO of the largest crypto fund manager in the US predicted.

The chief investment officer of the largest crypto fund manager in the US has predicted that the price of bitcoin could reach as high as $500,000 if the country creates a national bitcoin reserve.

Matt Hougan, of Bitwise Asset Management, said he saw bitcoin potentially hitting $500,000 if the US makes a national bitcoin reserve, which would mark a 380% increase from the coin's current price. Hougan told Yahoo! Finance that he believes the US buying bitcoin will drive more countries to purchase the crypto themselves.

"If we do get a bitcoin strategic reserve where the government is buying bitcoin … $200,000 bitcoin is going to be looking quaint. You're going to be looking at $300,000, $400,000, $500,000 bitcoin. It's just too big a story, because governments all around the world are going to have to do it," Hougan said.

Hougan said that he was skeptical when Trump first proposed the idea of creating a national bitcoin stockpile while on the campaign trail. However, he said the idea "hasn't gone away," and pointed to a new crypto bill proposed by Wyoming Senator Cynthia Lummis, and more members of Trump's administration saying they were open to the idea of a strategic bitcoin reserve. Trump also hinted at the reserve again last week in an interview at the New York Stock Exchange.

"I still think, you know, maybe it's less than a 50% chance, but it's not zero," he added. "And again, if it happens, or if we start to see it happen in other countries, you're going to see a rip-up in bitcoin that will make 2024 look pretty docile in comparison.

Bitcoin has rallied 55% since the presidential election, and more than 140% this year.

Hougan also said, separately from his outlook related to a bitcoin strategic reserve, that he saw bitcoin climbing to $200,000 over the next year as investor demand continues to rise.

He saw three "irrepressible" sources of demand for bitcoin, pointing to ETFs, Microstrategy, and governments potentially becoming bitcoin buyers themselves.

"At the end of the day it comes down to supply and demand. There's too much demand, not enough supply, so I think the price goes higher in 2025," he added.

Wall Street is growing increasingly bullish on crypto, especially with Trump's second term in sight. Standard Chartered, the firm that correctly predicted bitcoin's climb to $100,000 this year, is also calling for bitcoin to hit $200,000 by the end of 2025, while other bullish forecasts have the token rising as high as $500,000.