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Hougan noted that major wirehouses will soon drive the Bitcoin demand to the roof as the supply gets reduced during the halving event.
The approval of spot Bitcoin exchange-traded funds (ETFs) in the United States earlier this year was a huge trigger for the mainstream adoption of digital assets. Bitwise Asset Management CIO Matt Hougan noted in a recent CNBC Squawk Box interview that the approval of spot Bitcoin ETFs should be compared with an initial public offering (IPO). Moreover, anyone can now have direct exposure to the Bitcoin market through traditional stock exchanges.
Hougan highlighted that more capital is yet to be unlocked from major wirehouses to the spot Bitcoin ETFs. Remarkably, Hougan noted that Bitwise needs to review its former Bitcoin price prediction from $80,000 to much higher by the end of this year, perhaps above $100k.
Moreover, the demand for Bitcoin has significantly outstripped the daily supply from miners. Notably, spot Bitcoin ETFs amassed more than 30,000k Bitcoins in the past week compared to about 6,300 coins mined during the same period.
With more cash inflows expected in the near term amid the upcoming halving, Hougan believes Bitcoin price is well positioned to rally further in the coming quarters.
"With #Bitcoin right now … there is too much demand and not enough supply." – Matt Hougan, CIO Bitwise pic.twitter.com/1B0joUQ1Pp
— Michael Saylor⚡️ (@saylor) February 29, 2024
Already, Bank of America Corp (NYSE: BAC) and Wells Fargo & Co (NYSE: WFC) are reportedly offering their wealthy customers the option to invest in the various spot Bitcoin ETFs. A recent report also noted that Morgan Stanley (NYSE: MS) is considering offering spot Bitcoin ETFs to its customers. Interestingly, The Vanguard Group, Inc. Chairman and CEO, Mortimer Buckley is set to retire by the end of the year after three decades of service.
The retirement of Buckley comes after Vanguard blocked the investment of spot Bitcoin ETFs, thus promoting migration en masse.
Bitcoin Price Faces Short-Term Pressure
Bitcoin price closed February on a bullish note after reaching a new 25-month high of around $64,000. As a result, Bitcoin price faces short-term pressure after reaching a psychological resistance level in the past few days. According to a popular crypto analyst alias Captain Faibik on the X platform, Bitcoin price could be forming a macro ascending triangle, which often ends with an imminent bullish breakout.
$BTC Ascending triangle formation on the Monthly timeframe Chart..📈
If the 62k Crucial Resistance gets cleared, then the sky will be Clear.#Crypto #Bitcoin #BTC pic.twitter.com/fJ7SD2Lihw
— Captain Faibik (@CryptoFaibik) March 1, 2024
Meanwhile, on-chain data shows Bitcoin whales have accelerated accumulating pace in the past few weeks. As the short-term holders distribute the Bitcoin profits to the altcoin market, JPMorgan analysts told their clients that Bitcoin price may fall after the halving euphoria dissipates.
Notably, Bitcoin price could find solid support above $41k in case of a sudden sell-off in the coming weeks. Otherwise, the heightened demand for the flagship coin could lead to a fast rebound to a new all-time high in the subsequent months.
