The road ahead for Bitcoin looks promising. At least, this is the prediction of Bitwise Chief Investment Officer Matt Hougan.
According to the CIO, Bitcoin still has a significant chance to hit $1 million by 2029 — despite its recent lackluster performance.
In a March 18 investor note, Hougan explained how Bitcoin responds to economic uncertainty.
Bitcoin’s Complex Relationship With Economic Trends
In his view, Hougan mentioned that Bitcoin doesn’t always function as the crisis hedge many buyers expect. The cryptocurrency sometimes moves in sync with the broader US stock market when major economic news breaks.
This pattern appears to be repeating as markets await the 2025 Federal Open Market Committee (FOMC) Meeting this month.
The Bitwise executive advises holding onto your crypto investment despite the current uncertainty. He cites past data demonstrating Bitcoin price increases of more than 190% in the years following notable declines, a phenomenon he labels as a “dip then rip” trend that may recur in the coming weeks or months.
Million-Dollar Price Target Based On Discount Analysis
Using the Discounted Cashflow Analysis (DCA), Hougan calculated that a $1 million BTC price in 2029 translates to a current value of $218,604 when applying a 50% discount factor. This projection supports Bitwise’s long-term forecast of up to $1.1 million per coin.
With modest price movement, the cryptocurrency has recently traded between $81,180 and $84,340. Though obstacles still exist, other analysts, such as Ark Invest’s Cathie Wood, have foreseen a “deflationary boom” that could propel Bitcoin to its full potential.
US Government Involvement Could Shape Future Of Bitcoin
Reports suggest that potential US government actions could significantly influence the long-term future of Bitcoin. The proposed creation of a strategic Bitcoin reserve could indicate official acknowledgment of the relevance of the leading cryptocurrency.
Senator Cynthia Lummis has reintroduced the Bitcoin Act Bill, a move that appears to build institutional investor confidence. Regulatory changes affecting Bitcoin are also extending to other digital assets, particularly stablecoins.
Macroeconomic Factors Influence Short-Term Price Action
The Bitwise CIO also pointed out links between Bitcoin’s success and the ongoing US tariff wars. According to his analysis, the primary reason for Bitcoin’s price changes is its relatively low liquidity compared to standard markets.
In the short run, Hougan noted that geopolitical tariff conflicts might drive liquidity in the market. If this trend continues, it could be beneficial for Bitcoin as buyers seek safety amidst economic uncertainty.
Featured image from Gemini Imagen, chart from TradingView
