Bitwise CIO Predicts Bitcoin to Reach $200,000 by 2025 on Institutional Demand

Bitwise's Chief Investment Officer, Matt Hougan, has expressed optimism about Bitcoin's (BTC) price trajectory, suggesting that the cryptocurrency could reach close to $200,000 by the end of 2025. This projection is based on the increasing demand from blue-chip institutions and the limited supply of Bitcoin.

Hougan highlighted the significant demand from corporations and institutional investors, which is colliding with the severely limited supply of Bitcoin. The Bitcoin network produces only 450 Bitcoin per day, while Bitcoin ETFs alone bought 10,000 Bitcoin in a single day. This institutional investment into Bitcoin is seen as a one-time event that will take years to fully play out. Hougan believes that over the course of these years, there will be a persistent bid where demand exceeds supply, naturally driving the price of Bitcoin higher.

Hougan's prediction is supported by the growing interest in Bitcoin's use cases, particularly amid rising geopolitical uncertainty. Bitcoin provides a service that allows individuals to store wealth in a digital format without relying on traditional banking systems. This appeal is amplified in an uncertain world marked by tariffs and geopolitical tensions, where people seek to own their wealth in a digital format.

Hougan's forecast of Bitcoin reaching close to $200,000 by the end of 2025 would require a significant appreciation from current prices. This prediction is based on the fundamental dynamics of limited supply and accelerating institutional demand, rather than short-term market sentiment or technical analysis. The institutional adoption narrative is different from previous Bitcoin rallies driven by retail speculation and hype. Institutional money managers now view Bitcoin as a legitimate portfolio investment and not an experimental tech investment.

Hougan's comments come as Bitcoin is trading at around $117,470, reflecting a marginal decrease on the day. The substantial institutional commitment to cryptocurrency exposure is evident in the significant Bitcoin acquisitions by ETFs over the past 30 days. These purchases by regulated investment vehicles signal mainstream financial acceptance and create persistent buying pressure. Hougan believes that Bitcoin is breaking free from the $100,000 range it held for six months, suggesting this psychological barrier no longer limits its price movement. Now that Bitcoin has broken out of this gravitational pull, Hougan believes price discovery enters unknown territory, with the likelihood of accelerated appreciation.

Corporate adoption trends underpin the supply-demand shortage driving current price action. Companies are investing their treasury reserves in Bitcoin and, simultaneously, removing circulating supply from the market through long-term holding trends that remove tokens from trading. The finite supply of 21 million Bitcoin tokens creates limitations that exacerbate the cost impact of growing institutional involvement. Every significant allocation notice removes supply for future buyers, establishing a feedback loop that sustains greater valuations.

Hougan's prediction highlights these fundamental dynamics, rather than relying on technical analysis or short-term market sentiment. Bitcoin's performance across multiple timeframes supports bullish momentum with significant daily, weekly, and annual returns. These metrics indicate sustained demand across different investment horizons rather than short-term speculation. The convergence of limited supply and accelerating institutional demand creates conditions that historically precede major Bitcoin price advances.