Investors shouldn’t be overly concerned with the recent pullback in Bitcoin, says Matt Hougan – the chief investment officer of Bitwise Asset Management.

If anything, the weakness has created an opportunity for investors to load up or expand their stakes in the world’s largest cryptocurrency by market cap, he said in a recent interview with Yahoo Finance.

Hougan remains bullish on BTC despite the recent price retreat as “the number of tailwinds pushing this industry [crypto] forward is just extraordinarily strong” in 2025.

Bitcoin is going for $95,000 at writing – down more than 10% versus its all-time high in December.

Source: Brave New Coin Bitcoin Liquid Index (BLX)

Financial advisors are allocating more to Bitcoin

It’s been a year since the Securities & Exchange Commission first got on board with the launch of Spot Bitcoin ETFs in the United States.

Together, these investment vehicles have already attracted over $100 billion in institutional capital. Still, Matt Hougan is convinced the ETF inflows will accelerate significantly in 2025.

He’s positive on Bitcoin because the percentage of financial advisors who are allocated to cryptocurrencies doubled from 11% to 22% in 2024 – according to a recent survey by Bitwise.

More importantly, about 99% of the advisors who participated in that annual survey signaled their intent to maintain or even increase their allocation this year.

Hougan expects their allocation to be a meaningful tailwind for BTC as “these investors hold tens of trillions of dollars of assets.” On the back of continued institutional investments, crypto is poised for the “strongest bull market it has seen in a decade or so,” he added.

Source: TradingView

What else could unlock further upside in BTC in 2025?

Bitcoin has rallied substantially since Donald Trump won the US elections 2024. It was struggling to sustainably beat the $70,000 level before the elections versus close to $100,000 at writing. That’s because the President-elect has pledged to make America a crypto superpower.

And if his words managed to orchestrate such an unprecedented rally in the world’s largest cryptocurrency – imagine the kind of upside that could unlock once he starts to execute his plans in the months ahead, Hougan argued in his interview with Yahoo Finance.

“If we see things like stablecoin legislation move through Congress within the first 100-days, then we’ll know they’re very serious about making America the crypto capital of the world.”

Note that Donald Trump even plans on pushing for a strategic Bitcoin reserve. Such an initiative could help stabilize the crypto market and make it all the more attractive for global investors.

That’s why Matt and his team at Bitwise recently predicted that Bitcoin would hit $200,000 in 2025. That’s an extremely bullish price prediction by any standards.

Source: Bitwise

Bitcoin Adoption is Early

Matt Hougan is far from being alone in seeing the recent decline in the price of Bitcoin as an opportunity for long-term investors.

Andy Baehr of CoinDesk Indices echoed the same in a recent interview as the momentum in Bitcoin adoption “is just getting off to a start.”

Countries like El Salvador and the Central African Republic have already adopted BTC as a legal tender. Plus, you can now shop at a bunch of notable US companies, including Starbucks, Home Depot, AMC, and AT&T with Bitcoin.

Billionaire Elon Musk’s electric vehicles behemoth Tesla Inc also has plans of eventually accepting BTC as payment for its products.

Source: Woo Charts

Is it Too Late to Invest in BTC?

In conclusion, the stage is set for a robust rally in Bitcoin as we move into 2025. That means it is not to late to take a position in Bitcoin and prepare for further upside.

Factors such as increased institutional investment, greater mainstream adoption, and a favorable regulatory environment are converging to drive demand. Major corporations and even governments are recognizing Bitcoin’s potential as a store of value and a strategic asset.

Coupled with technological advancements and growing public awareness, these tailwinds create a perfect storm for a significant increase in the price of Bitcoin, as well as other institutional crypto assets such as XRP in 2025. Crypto investors wondering what crypto to buy now should look to Bitcoin first, and perhaps XRP next.

That’s because analysts like Geoff Kendrick of Standard Chartered expect BTC to hit $200,000 by the end of this year. His bold call translates to a more than 100% upside from current levels. That’s a risk return profile worth taking.