Bitcoin is the best hit ever, exceeding $111,000
Assessing the dynamics behind this historic rise, Matt Hougan, investment director at Bitise Asset Management, said the rally was just beginning and was a precursor to a long-term rise.
According to Hougan, the rise in Bitcoin is driven by two important factors. It is growing interest in institutional investors in the market and indirect support from the US government.
“Over the last 30 days, over $8 billion has flowed into Bitcoin ETFs, meaning new demand for fixed supply and pushing prices up,” Hougan said, with the government’s fiscal deficit and increased monetary printing policies moving investors away from Fiat Currencies and focusing on Bitcoin.
Hogan said the rise in long-term government bonds like Japan and the development of markets like Japan suggested investors were losing their desire to borrow. “The US government is no longer serious about budget cuts, which raises questions about the long-term value of the dollar,” he said.
Hougan also touched on why this powerful performance of Bitcoin was not seen in Altcoins, saying that Bitcoin is in a different position from “digital gold.” He said “cryptocurrencies like Ethereum and Solana should be valued just like technology investments,” and it is natural for these assets to work differently than Bitcoin.
Hougan expects Bitcoin to reach new records in the coming period.
*This is not investment advice.
