During a Yahoo Finance interview, Ryan Rasmussen, Bitwise’s Head of Research, reaffirmed the firm’s prediction that Bitcoin will reach $200,000 by 2026. He described the recent price drop as a normal shakeout in a maturing market rather than a break in the long-term trend.
When asked if Bitcoin has hit its bottom, Rasmussen suggested that the market is now closer to a low point than it has been in recent weeks. He attributed the decline to investors avoiding risk and the new dynamics introduced by Bitcoin ETFs. According to him, Bitcoin led the downturn starting in mid-October and is likely to lead the recovery when sentiment improves, noting that a turnaround seems nearer now than it did a week or two ago.
Rasmussen agreed that spot Bitcoin ETFs have become a double-edged sword. While they bring more liquidity and new investors, they also increase market turbulence during risk-off periods. He explained that Bitcoin is a major technological innovation, and its growing institutional presence adds stability over time, though it introduces more short-term volatility due to increased participation from hedge funds and other traders. He expects this volatility to decrease gradually, but not without occasional bumps along the way.
Addressing Bitcoin’s price swings, he noted that overall volatility has decreased over the past decade, despite recent spikes. He pointed to a shift in the type of buyers entering the market—now more long-term oriented, such as wealth managers and financial advisors who include Bitcoin in model portfolios and rebalance regularly. This should help reduce volatility and build sustained demand, though he acknowledged that corporate treasury purchases, which were strong earlier this year, have recently slowed due to the October sell-off.
Despite the current downturn hurting recent buyers, Rasmussen remains optimistic about Bitcoin’s medium-term prospects. He views lower prices as both a challenge and an opportunity, believing Bitcoin will finish the year higher than current levels. He emphasized that institutional adoption is underway, though it will happen gradually, citing examples like Harvard’s endowment investing in Bitcoin.
On the macroeconomic front, Rasmussen noted that Bitcoin, once promoted as independent from traditional finance, now reacts to central bank policies and interest rate expectations. In the post-COVID era, he observed, factors like potential rate cuts have a greater influence on its price.Equities have spiked or risen, but he noted that correlations are returning to historically low levels. He highlighted Bitcoin’s strong performance in low-rate and risk-on environments. Regarding the Fed’s December meeting, he mentioned that the market has largely factored in no rate cut and that investors are already looking ahead to 2026. The price target was clear: “This year, we had a target of $200,000, and it’s safe to say that won’t be reached by December. However, we believe Bitcoin will reach $200,000 in 2026,” Rasmussen stated. He based this prediction on institutional investments coming in waves from wealth managers, endowments, pensions, corporations, and governments, which he says are causing a systemic imbalance between demand and supply. At the time of reporting, BTC was trading at $91,205.
Frequently Asked Questions
Of course Here is a list of helpful and clear FAQs about Bitwises Bitcoin price prediction
Bitwises 200000 Bitcoin Prediction FAQs
The Basics Understanding the Prediction
1 What is Bitwise and why should I care about their prediction
Bitwise is a major wellknown asset management company that specializes in cryptocurrency investments like Bitcoin ETFs Their predictions are influential because they are deeply involved in the crypto market
2 What exactly is Bitwise predicting
Bitwise has maintained a prediction that the price of one Bitcoin will reach 200000 by the year 2026
3 Is this a guarantee
No not at all This is a prediction or a forecast based on their analysis All investments carry risk and the price of Bitcoin is famously volatile so there is no guarantee it will hit this target
The Why Reasons Behind the Prediction
4 What are the main reasons Bitwise thinks Bitcoin will hit 200000
They typically point to a few key factors
Spot Bitcoin ETFs The approval of these funds in the US makes it easy for regular investors and large institutions to buy Bitcoin potentially bringing in massive amounts of new money
The Halving A scheduled event that cuts the supply of new Bitcoins in half which has historically been followed by price increases
Growing Institutional Adoption More companies and financial firms are adding Bitcoin to their balance sheets increasing demand
5 What is the halving and how does it affect the price
The halving is a preprogrammed event in Bitcoins code that cuts the reward miners get for verifying transactions in half It happens roughly every four years By reducing the rate at which new Bitcoin is created it can create scarcity which if demand stays the same or increases can push the price up
6 How do Bitcoin ETFs increase demand
ETFs allow people to buy a share that tracks Bitcoins price through their regular stock brokerage account like Fidelity or Vanguard This is much simpler and more familiar for most people than using a crypto exchange opening the door for millions of new investors
Risks and Considerations
7 What could prevent Bitcoin from reaching 200000
Several things could get in the way