Hougan: supply/demand dynamic will drive BTC to new all-time highs

Bitwise Chief Investment Officer Matt Hougan says retail cryptocurrency traders are terribly depressed. However, institutions have a completely different sentiment, creating an incredible opportunity to purchase digital assets.

After Donald Trump’s election victory, institutional investors are optimistic. They are purchasing crypto via ETFs and the U.S. administration is no longer the biggest threat for market players.

At the same time, Hougan highlighted, the average digital asset is failing. BTC surged by 95% earlier, while ETH only gained 2%. Retail traders can speculate on cryptocurrencies, so the absence of an “altcoin season” bothers them.

“So the big question is: Who’s right? <…> the answer is: the institutions. It’s true that it’s very easy to be bullish on bitcoin right now. So far this year, ETFs have bought ~47,000 BTC and corporations have bought ~57,000 BTC, while the bitcoin network has minted just ~18,000 new BTC. It doesn’t take a genius to think that, over time, this supply/demand dynamic will drive prices to new all-time highs,” Hougan posted.

In Matt Hougan’s opinion, there is no major new app that could heighten interest in the sphere, like it was in 2017–2018 or 2020–2021. The most significant event that could be expected for altcoins is the memecoin boom.