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Bitcoin’s Value to Reach $1 Million by 2029, Bitwise Executive Attributes Growth to ETF and Government Demand

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    Bitcoin’s value to reach $1 million by 2029, Bitwise executive attributes growth to ETF and government demand.

    Bitcoin’s Decisive Leap: $1M by 2029 Fueled by ETF and Gov’t Demand – A Bitwise Exec’s Perspective

    In a recent interview, Bitwise’s Head of European Research, André Dragosch, shared a compelling argument on why he believes Bitcoin’s price could surpass $1 million by 2029. According to Dragosch, the crypto market’s fundamental shift towards institutional adoption, coupled with the emergence of ETFs and government demand, will propel Bitcoin’s price to unprecedented heights.

    The Growing Influence of Institutions

    Dragosch’s prediction is rooted in the accelerating adoption of Bitcoin by institutional investors. In recent years, we’ve witnessed the entry of prominent financial institutions, such as BlackRock and Morgan Stanley, into the crypto space. This trend is expected to continue, with more firms joining the fray and increasing their exposure to Bitcoin.

    The growing influence of institutions has two significant implications for Bitcoin’s price:

    • Increased liquidity: Institutional investors are known for their deep pockets and ability to mobilize capital. As they pour more funds into the crypto market, it will inject a lifeline of liquidity, reducing price volatility and increasing the asset’s overall market capitalization.
    • Market recognition: The influx of institutional investors will lend credibility to the crypto market, paving the way for greater mainstream acceptance. This increased recognition will, in turn, drive demand for Bitcoin, fueling its price growth.

    The ETF Effect

    Dragosch believes that the launch of Bitcoin ETFs will play a crucial role in the asset’s price appreciation. These ETFs have already surpassed expectations, with the iShares Bitcoin Trust ETF becoming the fastest-growing ETF in history.

    The ETF effect will manifest in several ways:

    • New investment channels: ETFs will provide individual investors with a low-cost, liquid way to gain exposure to Bitcoin, attracting a broader audience and increasing demand.
    • Increased trading volumes: The liquidity provided by ETFs will lead to higher trading volumes, further reinforcing the trend towards institutional adoption.
    • Improved market efficiency: ETFs will increase market transparency, providing valuable price discovery and reducing price manipulation risks.

    Government Demand: A Catalyst for Growth

    Government demand for Bitcoin is another critical factor in Dragosch’s prediction. The US government, in particular, is taking steps to increase its exposure to the asset. Bo Hines, a member of the Presidential Council of Advisers for Digital Assets, revealed that the US is exploring “many creative ways” to fund its Bitcoin investments, including tariff revenue and the reevaluation of US Treasury’s gold certificates.

    The government’s growing interest in Bitcoin will have a significant impact on the asset’s price:

    • Demand-driven growth: As governments begin to invest in Bitcoin, it will create a new demand driver, further propelling the asset’s price growth.
    • Increased credibility: Government involvement will lend credibility to Bitcoin, further increasing its appeal to institutional investors and the broader market.

    Prolonging the Cycle: Wirehouses and Commercial Banks

    Dragosch believes that the prolonged adoption cycle of Bitcoin will be fueled by the increasing involvement of wirehouses and commercial banks. These institutions control vast amounts of customer assets and are beginning to recognize the potential of the crypto market.

    The participation of wirehouses and commercial banks will:

    • Unleash a tidal wave of capital: As these institutions begin to invest in Bitcoin, it will unleash a significant influx of capital, further driving the asset’s price growth.
    • Increase mainstream acceptance: The involvement of these institutions will accelerate mainstream acceptance of Bitcoin, paving the way for greater adoption and higher prices.

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