Bitcoin's price has fluctuated between $81,180 and $84,340 recently, with analysts suggesting a potential 'deflationary boom' that could enhance its value.

Matt Hougan, Chief Investment Officer of Bitwise Asset Management, predicts that Bitcoin could reach $1 million per coin by 2029, driven by institutional adoption and demand outpacing supply.

He believes that the current economic uncertainty, including inflation and deflation fears, positions Bitcoin as a viable hedge for investors.

Hougan emphasizes the significance of regulatory changes in Washington, which could provide clarity and facilitate capital inflows into the cryptocurrency market.

The introduction of spot Bitcoin ETFs in January 2024 has led to a surge in institutional inflows totaling $37 billion, significantly surpassing previous records.

Despite the growing interest in Bitcoin, fewer than half of U.S. financial advisers currently engage in proactive discussions about Bitcoin investments, indicating room for increased asset inflows.

Corporate interest in Bitcoin remains strong, with many companies purchasing significant amounts despite facing accounting challenges.

Proposed U.S. government actions, including the reintroduction of the Bitcoin Act Bill by Senator Cynthia Lummis, could positively influence Bitcoin's future and boost institutional investor confidence.

Hougan notes that Bitcoin often aligns with the U.S. stock market during economic uncertainty, challenging its traditional role as a crisis hedge.

He highlights that Bitcoin's liquidity issues, compared to standard markets, contribute to its price volatility, particularly influenced by macroeconomic factors like U.S. tariff wars.

Hougan describes stablecoins as a 'killer app' that could reach a trillion-dollar market, improving transaction efficiency if regulatory frameworks support their development.

As of March 19, 2025, Bitcoin's price is $81,995.96, reflecting a 2.49% decline.