Bitwise: Demand could push Bitcoin to new highs

1. Bitwise’s warning and expectation: Bitcoin could reach unimaginable levels

Bitwise – one of the world’s leading digital asset management firms – recently stated that the “frenzied” demand from institutional investors could push Bitcoin’s price to unprecedented levels. According to Bitwise, the approval of spot Bitcoin ETFs serves as a strong catalyst, leading to massive inflows into the market.

Moreover, Bitwise highlighted that growing participation from major investment funds, banks, and traditional investors is creating a sustainable and long-term buying force for Bitcoin. This could potentially spark a “supercycle” – a massive growth phase – for BTC in the near future.

2. Why is demand surging right now?

Several factors are converging to fuel a sharp rise in Bitcoin demand:

   • ETF approval in the U.S.: These products make it easier for institutional investors to gain exposure to Bitcoin without holding the asset directly.

   • Inflation & economic uncertainty: Bitcoin is increasingly viewed as a financial safe haven amidst central bank liquidity injections and unpredictable interest rates.

   • Widespread FOMO sentiment: As Bitcoin crosses the psychological $70,000 mark, retail investors are also jumping back into the market.

3. Price forecast and cautions from Bitwise

Bitwise believes that if this inflow trend continues, Bitcoin could surpass $100,000 and even reach $150,000 in this cycle. However, the firm also cautions investors not to be overly optimistic, due to potential risk factors such as:

   • A possible interest rate hike from the Fed

   • Geopolitical tensions or unexpected regulatory events

   • Profit-taking pressure as BTC reaches new all-time highs

These factors could trigger sharp and sudden corrections.

4. Is bitcoin entering a turning point?

Bitwise’s forecast reflects strong confidence in Bitcoin’s long-term potential, but also emphasizes that this is a volatile period and not suitable for all investors. Monitoring on-chain data, macroeconomic news, and technical analysis will help investors make more informed decisions during this turbulent phase.