Matt Hougan, Chief Investment Officer at Bitwise, believes Bitcoin BTC/USD could more than double to $200,000 by the end of 2025, provided the Federal Reserve takes steps to stimulate the economy.

What Happened: Hougan's remarks come amid what he describes as a “coiled spring” effect, where positive crypto developments have been overshadowed by macroeconomic uncertainty.

"There's been so much fundamentally positive news that should have Bitcoin trading at $150,000 to $200,000 today," Hougan said, speaking with Coindesk.

He pointed to the launch of the U.S. strategic Bitcoin reserve, progress on stablecoin legislation and the SEC's rollback of enforcement actions as indicators of an improving regulatory environment for digital assets.

Despite these catalysts, Hougan attributed Bitcoin's current muted performance to broader economic concerns. "The overhang of economic uncertainty is weighing on markets," he explained.

Hougan anticipates a significant rally if the Federal Reserve signals readiness to stimulate the economy and ease fears of a recession.

However, he cautioned that a more conservative Fed approach could stall Bitcoin's momentum. "If the Fed plays the tough parent, Bitcoin could slide back to $72,000," he said, referring to its previous all-time high.

Hougan added that while Bitcoin could temporarily stagnate or retreat in such a scenario, he expects long-term demand to support the asset.

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Hougan emphasized the ongoing imbalance between supply and demand in the Bitcoin market, noting, "The Bitcoin network is only producing 165,000 BTC a year, yet ETFs alone bought 500,000 last year."

He also pointed to institutional and corporate interest as reinforcing Bitcoin's long-term trajectory, stating, "MicroStrategy continues to accumulate, and I believe the number of companies buying Bitcoin will triple this year."

What’s Next: While Hougan refrained from offering short-term predictions beyond the potential $72,000 retracement, he maintained that long-term structural factors remain intact.

"Bitcoin is going to get there eventually," he said, calling recent dips a "buy the dip" opportunity.

Hougan further added that the Federal Reserve's upcoming policy decision will be pivotal in determining whether Bitcoin's breakout comes this spring or later in the year.

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