Bitcoin once broke through $93,000, Bitwise: €500,000 is not a dream

Yesterday, the U.S. released the October Consumer Price Index (CPI) in line with expectations. The U.S. stock market saw mixed movements, while Bitcoin broke through the $90,000 mark, reaching a historical high of $93,265. Bitwise founder Matt Hougan expressed optimism, stating that Bitcoin reaching $100,000 is just around the corner, and he set a target price of $500,000 for Bitcoin.

U.S. CPI Meets Expectations

In October, the overall Consumer Price Index (CPI) in the U.S. rose by 2.6% compared to the same period last year. The core CPI, which excludes energy and food, saw a 3.3% year-over-year increase, both in line with estimates.

According to CME Group's FedWatch tool, the moderate inflation data has raised expectations of a rate cut by the Federal Reserve next month. Traders now predict an 86% chance of another rate cut in December, up from 58.7% the previous day.

Investors will also be watching for the Producer Price Index (PPI) data set to be released on Thursday. Federal Reserve Chairman Jerome Powell is scheduled to speak later this week, and retail sales and industrial production data will be published on Friday.

Bitcoin Hits New High at $93K

Since President Trump's election confirmation, Bitcoin has surged from $69K, breaking through the previous high of $73,777 in March this year, and has continued to set new records daily, reaching a new all-time high of $93,265 yesterday.

Bitwise: Bitcoin to Reach $100K Soon, Target $500K

Bitwise founder Matt Hougan is optimistic that Bitcoin hitting $100K is imminent, stating that it's still early and setting a target price of $500K for Bitcoin.

Hougan believes that investment in Bitcoin is based on two main reasons:

• As governments take on debt and devalue currencies, the demand for value storage assets like Bitcoin and gold will increase.
• People are increasingly accepting Bitcoin as a value storage asset alongside gold.

Regarding the second point, acceptance is still in its early stages.

The current market size of gold is $18 trillion, while the Bitcoin market is approximately $2 trillion, making the value storage market around $20 trillion. Hougan's $500K target price is based on an estimated market share split between Bitcoin and gold.

Hougan notes some progress, such as Senator Cynthia Lummis proposing a plan for the U.S. to establish a national Bitcoin reserve, aiming to use government funds to purchase over $80 billion worth of Bitcoin. If this scenario materializes, the $500K Bitcoin target will be well within reach.

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However, he believes that Bitcoin could potentially surpass this price, as the $500K target is based on Bitcoin gaining market share from gold, and in reality, the entire market may further expand, especially as governments continue to increase debt and print money, leading to rapid growth.

Can we see Bitcoin at $1 million? Higher? Absolutely. But $500K feels like a good start.