Bitcoin’s Road To $1 Million: Expect A ‘Dip Then Rip,’ Bitwise CIO Says

Christian Encila

2 months ago

2 mins read

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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 big 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 said 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 in spite of the current uncertainty. He cites past data that demonstrates Bitcoin price increases of more than 190% in the years after notable declines. This is what 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.

BTCUSD trading at $83,600 on the daily chart: TradingView.com

With a modest price movement, the cryptocurrency has traded lately 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 would help Bitcoin reach its full potential.

US Government Involvement Could Shape Future Of Bitcoin

Reports suggest that possible US government actions could have a major effect on the long-term future of Bitcoin. The proposed creation of a strategic Bitcoin reserve could indicate official acknowledgement of the relevance of the alpha coin.

Senator Cynthia Lummis, meanwhile, has reintroduced the Bitcoin Act Bill, a move that appears to be building institutional investor confidence. Regulatory changes affecting Bitcoin are also spreading to other digital assets, particularly stablecoins.

Macroeconomic Factors Influence Short-Term Price Action

The Bitwise CIO also pointed out links between the success of Bitcoin and the US tariff wars. The main reason for Bitcoin’s price changes, according to his analysis, is that it is not as liquid as standard markets.

In the short run, Hougan said that geopolitical tariff conflicts might make the market more liquid. If this trend keeps up, it could be good for Bitcoin because buyers are looking for safety from economic uncertainty.

Featured image from Gemini Imagen, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.