Bitcoin’s $50 Trillion Potential? Bitwise CIO Says Market Is Missing the Bigger Picture

Despite Bitcoin’s recent downturn, Bitwise CIO Matt Hougan remains bullish, predicting its valuation could soar to $50 trillion. In 2025, Bitcoin’s price has steadily declined, even after the U.S. government established a Strategic Bitcoin Reserve (SBR)—a historic milestone. Hougan attributes the dip to broader economic concerns, including trade tariffs and macroeconomic instability.

Many investors expected the U.S. to purchase more Bitcoin immediately, but the SBR will initially rely on confiscated assets already in federal custody. However, Hougan argues that the market is misjudging Bitcoin’s trajectory, underestimating the potential for the U.S. and other nations to expand their Bitcoin holdings. If governments and sovereign wealth funds adopt Bitcoin as a strategic asset, its valuation could skyrocket to between $10 trillion and $50 trillion.

Conversely, if Bitcoin fails to gain geopolitical significance, its price may struggle to exceed $150,000, remaining dominated by early adopters and speculators. Hougan dismisses short-term volatility as irrelevant, emphasizing that the creation of the U.S. Strategic Bitcoin Reserve strengthens Bitcoin’s position in global finance. He believes this move will push other countries to accumulate Bitcoin, reinforcing its potential for massive long-term gains.

With institutional adoption rising and global reserves evolving, Hougan sees Bitcoin as a major financial force. His forecast suggests a 5x to 25x return from current levels, making Bitcoin’s long-term outlook more promising than ever.