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Bitwise CIO Says 95% of Bitcoin Already Owned and 95% of Investable Money Does Not Own Bitcoin
May 16, 2025
Matt Hougan
Bitwise CIO Matt Hougan has drawn an analogy that suggests that Bitcoin would experience a severe supply shock, which would extensively push prices higher. Speaking at the Consensus 2025 Conference in Toronto, Hougan stressed that those holding Bitcoin now are still early. He agreed that the pioneering cryptocurrency has a lot of room to grow, stating that increased institutional exposure and dwindling supply would spark this rally. Notably, Eleanor Terrett, host of Crypto in America, mentioned a comment from Pantera Capital CEO Dan Morehead during a previous Consensus 2025 session, in which he suggested that the market has not even witnessed half of Bitcoin’s upside potential. Morehead suggested there was massive room for growth. In response, the Bitwise CIO agreed with this sentiment. He reiterated that 95% of Bitcoin’s 21 million total supply is already in circulation and owned by individuals and institutions. However, the demand for the asset is still in its nascent stages, with 95% of investable money still not exposed. According to him, analyzing these two facts drives home the theory that Bitcoin has higher prices to conquer. Interestingly, he has earlier predicted the crypto leader will rally to $200,000 by year-end.
Bitcoin Growing Increasingly Scarce
Meanwhile, despite a chunk of the global capital yet to flow into Bitcoin, the limitedly capped token is growing increasingly scarce. Bitwise highlighted this stance in a recent report, terming the token the scarcest store of value globally. With an annual supply increment rate of just 0.84%, Bitwise’s CEO, Hunter Horsley, concluded that Bitcoin is scarcer than gold and any other established store of value. Furthermore, with growing institutional traction, the asset could be heading for a supply shock. Moreover, another Bitwise report emphasized that 69% of the Bitcoin in circulation is in the hands of individuals, with investment vehicles like ETFs and businesses holding a combined 10.5%. As a result, institutions looking to buy large amounts of Bitcoin would have to hope that individuals sell their stash.
Institutional Influx to Drive a Multi-Year Bull Market
Further, demand for Bitcoin and crypto products is peaking. BlackRock and the broader US Bitcoin spot ETFs’ incessant inflows, Michael Saylor’s Strategy’s purchases, and other institutional acquisitions are outpacing Bitcoin’s supply. Hougan noted that this institutional wave would catalyze a multi-year bull market, extensively driving Bitcoin prices to uncharted territories. Specifically, he suggested that the leading cryptocurrency would appreciate for five consecutive years, defying the historical cyclical paradigm. Notably, he is not the first to suggest so. Recall that Binance’s Changpeng Zhao shared a similar sentiment in a recent RugRadio podcast, predicting that Bitcoin will trade above $160,000 by the end of 2025 and between $500,000 and $1 million at the conclusion of this bull cycle. In the meantime, Bitcoin trades at $103,984.
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