Bitwise CIO Predicts Bitcoin to Hit $1 Million by 2029

Matt Hougan, the Chief Investment Officer (CIO) of Bitwise Asset Management, recently made a bold prediction about Bitcoin's future on the Coinstories podcast. Hougan believes that Bitcoin will not only surpass gold but also reach a staggering $1 million per coin by 2029. He attributes this optimistic outlook to several key factors, including rapid institutional adoption, emerging regulatory clarity, and persistent long-term demand that outstrips new supply.

One of the primary drivers behind Hougan's prediction is the impact of spot Bitcoin exchange-traded funds (ETFs). He noted that the influx of new capital after the launch of these ETFs in January 2024 was significantly larger than most analysts had anticipated. Hougan highlighted that the most successful ETF of all time gathered $5 billion in its first year, while the Bitcoin ETFs amassed $37 billion. This rapid pace of inflows is expected to continue as more financial advisers become permitted to recommend Bitcoin to their clients, leading to an even larger influx of assets.

Hougan also discussed the competitive landscape among top ETF providers, emphasizing that BlackRock’s entry into the space benefits the entire industry by boosting overall participation. He noted that Bitwise focuses on meeting the needs of both institutional investors and crypto specialists who prefer a “crypto native” manager. The fierce competition among ETF providers has driven fees to “rock bottom,” making it an attractive deal for investors.

In addition to institutional finance, Hougan drew attention to the rapid expansion of stablecoins, which he described as a “killer app.” Stablecoins, which settle on blockchains, can improve cross-border money flows by providing cheaper and faster transaction rails. Hougan anticipates a stablecoin market measured in the trillions in the coming years, especially if supportive regulatory frameworks emerge. He expressed hope that the market would remain free enough to foster continued competition and innovation.

Hougan also highlighted the growing corporate interest in Bitcoin, noting that corporations bought hundreds of thousands of Bitcoin last year. He believes that these early movers signify a bigger wave to come once accounting and due diligence considerations are ironed out. His firm’s private surveys reveal a striking gap between advisers’ personal enthusiasm for Bitcoin—where over 50% already hold it themselves—and the roughly 15–20% who can formally allocate it on behalf of client portfolios. This number is expected to keep rising as more institutions realize the importance of having a non-zero allocation to crypto.

Throughout the interview, Hougan underscored the potential for regulatory shifts to significantly impact the market. He recalled how, until very recently, banks were unwilling to take deposits from crypto companies, and how multiple subpoenas, lawsuits, and the risk of “being debanked” had a chilling effect on industry growth. He believes that the government’s softer stance now removes an enormous obstacle for capital inflows and sees bipartisan support for stablecoin legislation as a powerful sign of regulatory clarity on the horizon.

Hougan also suggested that Bitcoin is poised to flourish in a macroeconomic climate rife with uncertainty. He referenced scenarios of runaway inflation or a sudden deflationary bust as potential risks that people fear, asserting that the market is more volatile or open or uncertain than it has been in the past. From his perspective, even a small allocation to Bitcoin provides a non-sovereign hedge against potential monetary or fiscal turbulence. Many of Bitwise’s large clients are looking into methods of generating yield on their Bitcoin—whether through derivatives or institutional lending—so they can maintain exposure without selling the asset itself. Such interest reflects the strong conviction levels that tend to characterize the crypto community.

Hougan’s conclusion circled back to the power of Bitcoin’s constrained supply and deepening institutional demand. He stated that Bitcoin’s finite issuance schedule, coupled with new buyers well outnumbering the amount of new Bitcoin mined, will likely continue pushing the price up over time. “I think Bitcoin is well on its way to disrupting gold,” he said. “We think it’s going to cross a million dollars by 2029.” Although he emphasized that day-to-day price swings can be dramatic, he is convinced that the long-term fundamentals remain unassailable.