TLDR:
- Bitwise CEO Hunter Horsley predicts Bitcoin will reach $1,000,000, citing unprecedented institutional adoption with major players like BlackRock now holding substantial Bitcoin positions, compared to their previous skepticism
- Bitcoin ETFs have strengthened BTC’s price support levels in early 2024, while 18 US states are considering Bitcoin reserve bills that could lead to purchases of nearly 250,000 BTC
- The 2024 halving event has reduced supply just as demand increases from various actors, including nations using Bitcoin to facilitate international trade
- Traditional finance veterans have shifted from dismissing Bitcoin to advocating for it, with examples like BlackRock’s CEO changing stance from calling it a “money laundering index” in 2017 to managing the world’s largest Bitcoin holdings
- While bullish factors align, challenges remain including quantum computing threats, scalability issues, and adoption hurdles for everyday currency use
Bitwise CEO Hunter Horsley has outlined a compelling case for Bitcoin reaching $1,000,000, pointing to several key factors that distinguish the current market cycle from previous rallies. In a series of posts on February 17, 2025, Horsley detailed how institutional adoption, regulatory clarity, and global demand are creating unprecedented momentum for the leading cryptocurrency.
The landscape for Bitcoin has changed dramatically since its early days. BlackRock, once a vocal critic, now manages the largest Bitcoin holdings globally. This transformation exemplifies the broader shift in institutional attitudes toward cryptocurrency. In 2017, BlackRock’s CEO labeled Bitcoin an “index of money laundering,” showcasing how far perceptions have evolved.
This year you’re going to see:
1. More flows into ETFs
2. More corporates buying more Bitcoin
3. More nation states buying more Bitcoin
4. US Wealth Management buying for clients
5. Banks and FIs launching services to help clients access Bitcoin
6. Regulators creating…
— Hunter Horsley (@HHorsley) February 17, 2025
Similar conversions have occurred across Wall Street. Warren Buffett’s Berkshire Hathaway, despite his famous “rat poison” comment about Bitcoin in 2018, later invested in crypto-friendly Nu Bank in 2021. These moves represent a broader pattern of traditional finance embracing digital assets.
The introduction of Bitcoin ETFs has created a new foundation for price stability. Early 2024 saw these investment vehicles strengthen Bitcoin’s support levels, making the asset more accessible to traditional investors and institutions who previously faced barriers to direct cryptocurrency investment.
State-level adoption has emerged as a surprising driver of demand. Currently, 18 U.S. states are considering Bitcoin reserve bills. If passed, these initiatives could result in the purchase of approximately 250,000 BTC, creating substantial new demand from government entities.
The global political landscape has also shifted in Bitcoin’s favor. Countries facing international sanctions have begun exploring Bitcoin as a means of facilitating foreign trade. This development mirrors the cryptocurrency’s performance during the global uncertainty of 2020, when it proved its value as a haven asset.
The 2024 Bitcoin halving has reduced new supply just as institutional and governmental demand increases. This supply-demand dynamic creates potential for price appreciation, especially given the fixed maximum supply of 21 million bitcoins.
Market infrastructure has matured considerably. Financial institutions and banks have developed better onboarding processes for general public participation in the Bitcoin market. This improved accessibility removes traditional barriers to entry for new investors.
The regulatory environment shows signs of clarity, though challenges remain. Various jurisdictions have established clearer frameworks for cryptocurrency operations, providing certainty for institutional investors who previously hesitated due to regulatory concerns.
High-profile endorsements from respected financial figures have added credibility to Bitcoin’s position in the global financial system. This growing chorus of support includes industry leaders, economists, and former critics who now acknowledge Bitcoin’s potential.
Challenges
However, several challenges could impact Bitcoin’s growth trajectory. Quantum computing poses a theoretical threat to Bitcoin’s security model, though solutions are being explored. The cryptocurrency’s scalability limitations remain a technical hurdle, though wrapped Bitcoin and ETFs offer potential workarounds.
User adoption as a currency faces ongoing challenges. Despite growing institutional interest, everyday use of Bitcoin for transactions remains limited. Critics point to this gap between investment appeal and practical utility.
The decentralization of Bitcoin has come under scrutiny as large institutions accumulate holdings. Some community members express concern about the concentration of ownership and its potential impact on the network’s fundamental principles.
Global monetary policy could affect Bitcoin’s appeal. Changes in traditional currency management, particularly moves toward deflation in major economies, might influence demand for alternative assets like Bitcoin.
