Bitcoin Could Hit $200,000 by Year End Driven by Institutional Demand

Bitwise Asset Management's Chief Investment Officer, Matt Hougan, has predicted that Bitcoin could reach $200,000 by the end of the year. This forecast is driven by several key factors, including the increasing institutional demand for Bitcoin and the limited supply of the cryptocurrency. Hougan highlighted the significant imbalance between growing institutional demand and the fixed issuance schedule of Bitcoin, noting that the Bitcoin network produces only 450 Bitcoin per day, while Bitcoin ETFs alone bought 10,000 Bitcoin in a single day.

Hougan emphasized that the current rally in Bitcoin is not a short-term spike but a structural force that will persist for years. He explained that the persistent demand from corporations and institutional investors, coupled with the limited supply, will drive the price of Bitcoin higher. Hougan predicted that Bitcoin could end the year closer to $200,000, suggesting that investors should get used to the story of new all-time highs.

Hougan framed the Bitcoin rally as more than just price action, reflecting a shift in how investors are approaching wealth preservation. He noted that Bitcoin offers a unique service by enabling users to store value digitally without dependence on the banking system, a trait that has become more attractive in today’s climate of geopolitical risk, fiscal uncertainty, and rising tariffs. As more investors recognize this utility, demand continues to build, with market sentiment playing a role but functional demand for the service Bitcoin provides being the primary driver.

Hougan described the broader backdrop as unusually supportive for Bitcoin’s continued rise. He stated that the current market conditions represent a rare alignment of forces—policy, structural, and macroeconomic—that are reinforcing each other and creating sustained upward momentum in digital assets. Positive regulatory news, positive legislative news, institutional adoption, and concern about debt and deficit are all contributing to the upward trend in Bitcoin's price.

The surge in Bitcoin's price has been driven by a combination of factors, including renewed risk-on sentiment following the release of the Federal Reserve's June meeting minutes. The minutes suggested that interest rates could be cut later this year, which has triggered a bullish sentiment across the crypto market. Additionally, on-chain data shows minimal selling pressure from traders, indicating that Bitcoin could continue to rally.

Corporate and institutional demand for Bitcoin has also been robust. Japanese investment firm Metaplanet announced that it had purchased an additional 2,205 BTC, bringing its total holding to 15,555 BTC. Murano Global Investments PLC, a Nasdaq-listed real estate firm, also announced plans to establish a Bitcoin Treasury. Furthermore, spot Bitcoin ETFs have recorded significant inflows, with a total of $1.69 billion this week as of Thursday.

Despite the bullish outlook, there are some signs of concern. The ongoing tariff uncertainty and geopolitical tensions could drive investors toward safe-haven assets, potentially impacting the price of Bitcoin. However, if the upward trend continues, Bitcoin could extend its rally toward the key psychological level of $120,000.

Hougan's prediction of $200,000 by the end of the year is ambitious, but it is based on the current momentum and institutional demand for Bitcoin. If these factors continue to drive the price higher, it is possible that Bitcoin could reach this milestone. However, it is important to note that the cryptocurrency market is highly volatile, and prices can fluctuate rapidly. Investors should approach this prediction with caution and conduct their own research before making any investment decisions.