• Bitwise CIO Matt Hougan predicts Bitcoin volatility will fall 50% as institutional adoption rises
• Hougan reaffirms previous price predictions, stating Bitcoin is still on track to hit $250,000 in the coming years
• Institutional capital inflows into Bitcoin ETFs could exceed $200 billion, promoting market stability and solidifying Bitcoin’s position as a mainstream financial asset
A recent investor note from Bitwise CIO Matt Hougan provided an in-depth analysis on Bitcoin’s future trajectory towards the 2028 halving. Hougan predicts a 50% decrease in volatility and increased institutional investor activity.
Bitcoin Price Growth
Bitcoin hit a new all-time high weeks before the 2024 halving, continuing an unprecedented surge. Hougan believes this trend will persist post-halving, escalating Bitcoin’s price dramatically as it has after past halvings since its $13 valuation in 2012.
Hougan reaffirmed previous $250,000 price predictions, stating Bitcoin remains on track to hit that milestone in coming years. He added that consistent growth in value reflects Bitcoin’s increasing mainstream acceptance, especially after the launch of spot Bitcoin ETFs.
Impact of Institutional Money
Hougan emphasized the importance of spot Bitcoin ETFs in attracting institutional investors like financial advisors and large firms. He said this shift, introducing more disciplined trading, will contribute significantly to the predicted 50% volatility reduction by 2028.
Institutional investors employ strategic rebalancing and incremental investments, contrasting with speculative retail trading dominating Bitcoin historically. Hougan predicts Bitcoin will become a standard portfolio component by 2028, with allocations potentially reaching or exceeding 5%.
$200 Billion AUM Potential
Hougan forecasts institutional capital flowing into Bitcoin ETFs could exceed $200 billion, driven by broader access and integration. This would promote stability and cement Bitcoin as a mainstream asset.
Risks Remain
The optimistic Bitcoin outlook is tempered by inherent crypto risks like volatility and regulatory uncertainty. Nevertheless, Hougan outlines a future where institutional Bitcoin adoption could fundamentally alter market trends by 2028.
