$1.3 Million Bitcoin Will Be “Relatively Easy,” Says Bitwise’s Matt Hougan | Markets Outlook

Matt Hougan predicts that Bitcoin will reach $1.3 million by 2035, driven by extremely bullish market conditions. He believes there is a strong possibility for Bitcoin to rebound to $100,000 this year, although he anticipates some short-term consolidation in the coming weeks. A positive macroeconomic development could reignite a second phase of the current rally.

Hougan stresses the importance of asset allocation, arguing that having 0% in Bitcoin represents a misallocation that poses future risks. He critiques traditional portfolios, which typically consist of 60% stocks and 40% bonds, as being entirely based on fiat currency. He highlights the alarming growth in global debt, projecting it to rise from $40 trillion to $100 trillion.

Currently, institutions have a 0% allocation to crypto, but Hougan expects this to increase to between 1% and 10% as the tokenization market develops. He describes the tokenization supercycle as lasting a decade, with the market for tokenized assets having the potential for 2,000X growth. Presently, there are about $300 billion in tokenized assets, compared to a total asset value of $600 trillion worldwide.

Retail participation is expected to continue driving the crypto market, with social trading experiencing substantial growth. Hougan mentions that Hyperliquid is often misunderstood and serves a $200 trillion market. He also notes that Ethereum is performing well as the second-largest asset in their index fund, while Solana is emerging as a leader in tokenized stocks and is currently undervalued.

The Real World Assets Summit has a bullish atmosphere, and Hougan believes the gap between on-chain assets and available assets will close. He views Bitcoin as a hedge against currency debasement and observes significant changes in the market due to increased institutional participation, particularly at conferences where crypto natives and institutions converge.