In a recent investor update, Bitwise Chief Investment Officer Matt Hougan offered an extensive analysis of Bitcoin's path leading up to the 2028 halving, foreseeing a 50% reduction in volatility and increased involvement from institutional investors.

Hougan predicts a significant surge in Bitcoin's price post-2024 halving, akin to its historical performance following previous halvings. He maintains his earlier forecast of Bitcoin reaching $250,000 in the foreseeable future, citing its consistent growth and the growing acceptance of Bitcoin in the financial sector.

Spot Bitcoin ETFs are highlighted as a game-changer, attracting institutional investors like financial advisors and large entities, who bring stability to the market through disciplined trading strategies. Hougan anticipates this shift to contribute to the projected decrease in Bitcoin's volatility.

He envisions Bitcoin becoming a standard component of investment portfolios by 2028, with allocations potentially exceeding 5%, supported by the maturing market and reduced price fluctuations. Hougan also anticipates institutional capital inflows into Bitcoin ETFs surpassing $200 billion, promoting market stability and cementing Bitcoin's status as a mainstream financial asset.

While acknowledging the risks associated with crypto investments, Hougan paints a future where Bitcoin achieves widespread institutional adoption, fundamentally reshaping its market dynamics by the 2028 halving.