Bitwise CIO Matt Hougan predicts Bitcoin and Ethereum will see explosive growth in the next 18 months due to a significant demand shock. He forecasts Bitcoin reaching $200,000 by 2025, driven by institutional demand outpacing supply growth. Companies like MicroStrategy are key players in this demand surge.

Hougan highlights a growing disparity between Ethereum demand and supply since mid-May. Companies and ETFs have purchased 32 times more ETH than has been issued, leading to a significant demand shock. Inflows into ETH ETFs have reached $4.4 billion this month, indicating a major institutional reallocation.

The integration of crypto into retirement accounts could be the next catalyst for the market. Hougan points to Donald Trump’s proposal to allow 401(k)s and IRAs to invest in Bitcoin, potentially exposing $8 trillion in retirement assets to BTC. This could lead to widespread regular investment from millions of Americans.

The maturing crypto market dynamics are driving an “altcoin season in TradFi,” where investors rotate profits from Bitcoin ETFs into Ethereum and other digital assets. ARK Invest exemplified this trend by selling Coinbase stock to invest in a Bitcoin treasury company. Bitwise notes a high demand for yield generation on Bitcoin holdings among institutional clients.

Read more at Yahoo Finance: Bitcoin To Hit $200,000 By Year-End, Bitwise’s Matt Hougan Maintains