Odaily Planet Daily reports that Matt Hougan, Chief Investment Officer at Bitwise, said Bitcoin’s price could potentially reach $1 million per coin in the future. He believes that when viewed from the perspective of the global “store of value” market, Bitcoin’s long-term potential becomes clearer, as it is increasingly competing with gold as a digital store of value asset.
In his latest memo titled "How Bitcoin Gets to $1 Million," Hougan notes that the global store of value market is currently about $38 trillion, with approximately $36 trillion coming from gold and Bitcoin accounting for about $1.4 trillion, less than 4% of the market.
Hougan believes that many investors underestimate Bitcoin’s potential because they overlook the rapid growth of the store-of-value market itself. For example, when the first U.S. gold ETF launched in 2004, the global gold market was worth approximately $2.5 trillion; today, it is nearing $40 trillion, with a compound annual growth rate of about 13%. This growth has been primarily driven by rising government debt, geopolitical uncertainty, and accommodative monetary policies.
If the store of value market continues to expand at a similar rate over the next decade, its size could reach approximately $121 trillion. Under this scenario, Bitcoin would need to capture only about 17% of the market share to reach a price of $1 million.
Hougan also noted that the development of the crypto market in recent years has laid the foundation for this outlook. For example, just a few years ago, there were no spot Bitcoin ETFs in the United States, whereas today, spot Bitcoin ETFs have become one of the fastest-growing ETF products in history. Meanwhile, institutional investors, including the Harvard University endowment and the Abu Dhabi sovereign wealth fund, have begun allocating to Bitcoin.