As bitcoin jumps to $93,000, Bitwise analyst claims 'you're still early'
On Wednesday, the value of bitcoin jumped to $93,000, reflecting a surge of positive interest in the world’s largest cryptocurrency, which began 2024 at a more modest level near $43,000.
“Institutional and retail alike are buying in after Trump’s election, but the industry overall is more mature than ever,” JP Richardson, CEO of Exodus, told TheStreet Crypto. “The euphoria is just beginning.”
While many bitcoin investors are watching their personal stash of bitcoin holdings skyrocket, some analysts underline that it’s not too late to capitalize on the election-inspired uptick in prices.
On Tuesday, Matt Hougan, Chief Investment Officer at Bitwise, said that bitcoin is rapidly approaching the $100,000 mark, with even $500,000 no longer a distant possibility. "Bitcoin is still evolving, even after this latest rally," Hougan noted in a blog post, emphasizing that true maturity for the asset may only come when it reaches the $500,000 threshold. He stressed the importance of investors understanding this trajectory when developing their own investment strategy.
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“Moments like these spark waves of emotion,” Hougan explained. “Those who owned bitcoin prior to the November election are jubilant, and rightly so. But many of those who didn’t feel as though they’ve missed the boat,” Hougan said. “For this latter group, I have a message: You’re still early. In fact, you’ll be “early” until bitcoin crosses $500,000.”
Hougan said that $500,000 represents the transition of the cryptocurrency from an emerging asset to a mature store of value, which he compared to gold.
At the same time, he cautioned investors to remember the volatility of the asset. “There is no guarantee that bitcoin will ever be worth $500,000 per coin," he wrote. "We don’t even know if it will eclipse $100,000."
Meanwhile, speculation is building that if President-Elect Donald Trump takes office with a Republican-controlled House and Senate, the Cynthia Lummis strategic bitcoin reserve legislation could pass, unleashing greater price growth for the world's leading digital asset. "When Trump takes office with a [Republican] House and Senate, it's very possible the Cynthia Lummis strategic bitcoin reserve legislation gets passed, resulting in the United States purchasing up to 1 million bitcoins," Richardson told TheStreet Crypto. "More countries, Fortune 500 companies, and other major players would then consider buying bitcoin. All of this excitement will continue to drive positive price action."
