Bitwise CIO Highlights Key Signals for Bitcoin’s Path to $1 Million

Bitwise Chief Investment Officer Matthew Hougan Hougan outlined on December 13 key developments he believes signal Bitcoin’s potential rise to $1 million.

In a recent social media post, Hougan highlighted several milestones, including BlackRock’s endorsement of a 2% portfolio allocation to Bitcoin and the record-breaking success of Bitcoin exchange-traded funds (ETFs).

When bitcoin hits $1 million, investors are going to look back and wonder how they missed such obvious signs, including:

>>The once-and-future President of the United States keynoting the Bitcoin Conference

>> BlackRock recommending a 2% allocation to bitcoin in portfolios

>>…

— Matt Hougan (@Matt_Hougan) December 13, 2024

Trump, ETFs, and Institutional Recommendation

Hougan underscored the importance of high-profile endorsements, mentioning comments from prominent investor Ray Dalio, who recently expressed support for owning Bitcoin. Such endorsements would contribute to increasing mainstream credibility for the asset.

He pointed to the unprecedented performance of Bitcoin ETFs, which have surpassed previous records by a significant margin. This may indicate a substantial level of interest from institutional and retail investors alike.

Another factor highlighted in Hougan’s post was Donald Trump’s participation as a keynote speaker at a major Bitcoin conference. This could be interpreted as a sign of Bitcoin’s growing political acceptance and integration into broader financial discussions.

Florida Proposes to Establish Bitcoin Reserve

Florida is considering the establishment of a Bitcoin reserve, with the initiative potentially launching in early 2025.

Samuel Armes, President of the Florida Blockchain Business Association (FBBA), shared the proposal’s details, including using state pension funds and budget surplus for crypto investment.

Armes highlighted that allocating just 1% of Florida’s $185.7 billion pension fund to Bitcoin could create a reserve worth approximately $1.857 billion. He noted that the state’s pension fund has already engaged in crypto-related investments through hedge funds, including stakes in companies like Coinbase and MicroStrategy.

Beyond the pension fund, Armes suggested allocating 1% of Florida’s $116.5 billion budget surplus, which would amount to $1.165 billion, toward the investment. He emphasized that this would further solidify Florida’s financial position while diversifying its investment portfolio.

Armes also cited a favorable legislative environment in Florida and expressed optimism about the prospects of passing the necessary measures. He revealed plans to advocate for this initiative and three other Bitcoin-focused bills in the upcoming legislative session.