Investment director of Bitwise Asset Management Matt Hougan named factors that could push Bitcoin to a price above $200,000.

A top manager at Bitwise Asset Management said that Bitcoin’s surge will not require a collapse of the US dollar. Growth will occur as the crypto asset strengthens as a store of value comparable to traditional assets, including gold, Hougan is confident.

Bitcoin now accounts for about 7% of gold’s $18 trillion market capitalization. If Bitcoin’s capitalization had reached at least half of this amount, the first cryptocurrency would have traded at $400,000 per coin, Hougan suggested. By that time, Bitcoin will already have become a “mature asset” and will be considered the main instrument for preserving savings, especially in the investment portfolios of large legal entities.

The growth in demand for Bitcoin will also be facilitated by the ineffective monetary policies of governments, Hougan noted. Central banks continue to expand the money supply and increase inflation, causing non-sovereign assets, including Bitcoin, to become increasingly popular among people seeking alternative stores of value.

Hougan emphasized that these two factors – the maturation of Bitcoin and the growing demand of the population of different countries for stable assets to preserve savings – complement each other. If Bitcoin is perceived on par with traditional assets, the BTC price could rise to seven figures. According to Hougan, this is the most likely scenario for Bitcoin growth in the long term.

Earlier this month, Hougan explained what would need to happen for Bitcoin to reach $80,000 by the end of the year. According to the top manager, if major scandals and bankruptcies associated with well-known participants in the crypto market do not occur by the end of December, investor confidence in cryptocurrencies will strengthen.