Why Did Bitcoin (BTC) Price Break a Record? Why Are Altcoins Silent? The Analyst Explained the Reason

Bitcoin, has surpassed 111 thousand dollars, reaching the highest level of all time.

Evaluating the dynamics behind this historic rise, Matt Hougan, the Chief Investment Officer of Bitwise Asset Management, stated that the rally has only just begun and is a harbinger of a long-term increase.

According to Hougan, the rise of Bitcoin is occurring due to the influence of two key factors: the increasing interest of institutional investors in the market and indirect support from the US government.

"In the last 30 days, more than 8 billion dollars have flowed into Bitcoin ETFs. This indicates new demand against a fixed supply and pushes prices up," said Hougan, adding that the government's increasing budget deficits and money printing policies are also driving investors away from fiat currencies, which has increased the shift towards Bitcoin.

Hougan stated that the rise in long-term government bonds and developments in markets like Japan indicate that investors' appetite for borrowing has decreased. "The U.S. government is no longer serious about budget cuts. This also raises questions about the long-term value of the dollar," he said.

Hougan also touched on why this strong performance of Bitcoin has not been seen in altcoins, stating that Bitcoin occupies a different position as "digital gold." He mentioned that cryptocurrencies like Ethereum and Solana should be evaluated more as technology investments, pointing out that it is natural for these assets to show different performances from Bitcoin.

Hougan predicts that Bitcoin will reach new all-time highs in the upcoming period.