Experts reaffirm $100,000 target for Bitcoin despite downturn

Amid the recent crypto market downturn, prominent industry figures are predicting that Bitcoin (BTC) price could reach the $100,000 mark by the end of the year.

This prediction comes from Matt Hougan, Chief Investment Officer (CIO) at Bitwise, and Anthony Scaramucci, founder of SkyBridge Capital. Their optimism stems from several key developments in the crypto market.

One-off sales vs. long-term growth: experts weigh in on Bitcoin’s future

The crypto market is currently struggling with several headwinds. One important factor is the distribution of Bitcoin from the now-defunct Mount Gox exchange, which began in early July. Mt Gox is expected to distribute more than $8 billion worth of Bitcoin to creditors, with significant amounts likely to hit the market soon.

Similarly, the US government’s sale of Bitcoin seized from Silk Road, a notorious online black market, is adding to the market’s current pressure. The US Marshals Service recently selected Coinbase Prime to manage these assets, signaling their imminent sale.

Adding to these liquidity shocks are the German government’s Bitcoin sales of various seizures. On-chain data shows that the German government continues its Bitcoin sales today.

Arkham Intelligence data reveals that the wallet transferred 375 BTC each to several crypto exchanges, including Bitstamp, Kraken and Coinbase. In addition, it moved 250 BTC to the wallet ‘bc1qq’ and 1,000 BTC to the wallet ‘139Po’. The German government wallet balance has decreased from around 24,000 BTC as of yesterday to 13,000 BTC at the time of writing.

Read more: Who owns the most Bitcoin in 2024?

However, Matt Hougan sees these deals as “one-off sales” that will eventually end. He believes that once the market absorbs these sell-offs, the long-term bullish factors will drive significant growth.

“As investors, we are taught to look beyond non-recurring events when evaluating investments. They don’t talk about the investment’s long-term value. In other words, this too shall pass,” he confirmed.

Hougan highlights a notable shift in regulatory attitudes toward cryptocurrencies in Washington as one of the positive factors for Bitcoin in the long term. Additionally, the US Securities and Exchange Commission’s (SEC) impending approval of spot Ethereum exchange-traded funds (ETFs) is another element likely to fuel the crypto market. He estimates these ETFs could attract $15 billion in net flows within their first 18 months on the market.

Furthermore, the Federal Reserve’s expected rate cuts over the next year could catalyze the crypto market. Lower interest rates generally bode well for risk assets, including cryptocurrencies.

“Add in strong growth in stablecoins, major developments in Layer 2s, institutions like BlackRock moving deeper into the space, and more, and it’s one heck of a setup. The right mix of developments in the second half of the year could easily drive Bitcoin to $100,000 and push Ethereum to new all-time highs,” Hougan added.

Anthony Scaramucci also shares this perspective in a recent interview with CNBC. He emphasizes the temporary nature of the current market pressure.

“We still like the fundamentals of Bitcoin long-term. And I do think, like I said, it will be $170,000 after halving, but I think it could hit $100,000 by the end of the year,” he said.

Read more: What is a Bitcoin ETF?

Despite Bitcoin’s price being below $60,000 for the past seven days, investors are showing confidence in the cryptocurrency. This resurgence is evident in the recent inflows into spot Bitcoin ETFs in the US and Hong Kong.

Data from SoSo Value reveals that US spot Bitcoin ETFs received $801.7 million in inflows from July 5th to July 10th. Meanwhile, Hong Kong’s spot Bitcoin ETFs attracted 428.59 BTC in inflows, which is worth about $25 million at current market prices.