Bitcoin As miners adapt to declining rewards, experts like Bitwise’s Chief Investment Officer Matt Hougan continue to share their predictions for the future. While the next halving is expected to occur in 2028, Hougan made five important predictions about the future course of BTC.
1. Decreasing Volatility
Hougan predicts a 50% reduction in Bitcoin’s volatility and attributes this to the inflow of institutional investors through ETFs. The CIO noted that this increased institutional involvement will bring greater stability by rebalancing portfolios and making stable investments, thereby reducing price fluctuations.
According to the CIO, “ETFs are bringing new types of investors to the Bitcoin market, such as financial advisors, family offices, institutions, etc. “These investors act differently than the retail investors who have dominated BTC so far.”
2. Increased Portfolio Allocations
Expectations suggest that BTC allocations in target date portfolios could reach 5% or more. “As a result, I suspect we will see the ‘typical’ portfolio allocation increase to the point where 5% or more of your portfolio in BTC is considered normal,” Hougan said. Therefore, increased acceptance could lead to more widespread adoption across various investment platforms.
3. ETF Flows Exceed $200 Billion
According to Hougan’s estimates, “the Bitcoin ETF‘s have generated ~$12.5 billion in net flows since their launch three months ago. “This makes them the fastest-growing new ETF category of all time.”
ETFs have already generated significant inflows, but Hougan predicts this trend will accelerate. As more investors explore ETFs and financial institutions join this trend, significant demand is expected to emerge over the long term.
4. Central Banks Are Embracing Bitcoin
Hougan predicts that central banks, attracted by Bitcoin’s ability to be a non-debt currency and its utility in a geopolitically tense world, may start allocating reserves to Bitcoin. He suggests that central banks may view BTC as a hedge against geopolitical risks, signaling a significant shift in global finance.
5. Bitcoin Price Exceeds $250 Thousand
With Bitcoin’s increasing mainstream acceptance and institutional support, Hougan predicts a price increase that could exceed $250,000 per token by 2028. Hougan believes the asset will continue to move towards the mainstream as more institutions and investors adopt it.
“With ETFs launching and assets aggregating – and major Wall Street firms lining up behind Bitcoin – I suspect the asset will continue to move towards the mainstream,” says Hougan.
Industry experts echo Hougan’s views, predicting significant price increases driven by institutional adoption and broader acceptance.
Pav Hundal predicts a 100% price increase, while Henrik Andersson predicts prices will exceed $200,000 before 2028. This bullish outlook is supported by continued institutional interest and growing market presence.
As Bitcoin miners head towards diminishing rewards, predictions for the next halving offer valuable insight into Bitcoin’s future trajectory.
