Episode Summary: "Bitcoin To $200K? Ethereum Demand Shock: Will ETH Explode?"
Podcast Information:
- Title: The Wolf Of All Streets
- Host: Scott Melker
- Episode: Bitcoin To $200K? Ethereum Demand Shock: Will ETH Explode?
- Release Date: July 24, 2025
In this episode of The Wolf Of All Streets, host Scott Melker delves deep into the bullish outlook on Bitcoin and Ethereum with expert guests Matt Hogan and Iago, followed by market analysis from Dan. The conversation navigates through price predictions, institutional investments, ETF developments, regulatory challenges, and the evolving relationship between traditional finance (TradFi) and the cryptocurrency ecosystem.
1. Bitcoin's Bullish Projection to $200K
Matt Hogan opens the discussion by reinforcing the optimistic forecast that Bitcoin is headed to $200,000 by the end of 2025. This assertion is supported by a recent article from Coin Telegraph titled “Bitcoin supply crunch boost confidence in 200k targets for 2025”.
Matt Hogan [01:26]: “We try to make ours measurable. A Bitwise. That's one of the things, it's a little scary, but I do have a high degree of confidence we're going there.”
Hogan attributes this projection to a significant supply-demand shock in both Bitcoin and Ethereum. He explains that when demand exceeds supply by 5 to 10 times, prices tend to soar, a dynamic currently observable in the cryptocurrency markets.
2. Ethereum's Demand Shock and Potential Explosion
The conversation shifts to Ethereum, where Matt Hogan discusses a 32-fold increase in demand compared to Ethereum’s new supply since mid-May. He highlights a $4.4 billion inflow into Ethereum ETFs this month alone, signaling aggressive institutional interest.
Matt Hogan [03:07]: “There is this supply demand shock in both Bitcoin and Ethereum and I didn't study that much economics, but I know enough that when demand is 5 to 10x supply, the price tends to go up. And I think that's just the story in crypto right now.”
Scott Melker adds that institutional behaviors, such as Bitcoin treasury companies and major players like Michael Saylor, are driving this demand surge, further propelling Ethereum’s bullish trajectory.
3. Bitcoin vs. Ethereum ETFs and Institutional Rotation
Iago provides insights into the recent movements in ETF flows, noting that Ethereum ETFs are outperforming Bitcoin ETFs, with Ethereum experiencing significant inflows while Bitcoin sees outflows.
Iago [04:47]: “... People are looking for greater potential upside. There's obviously much higher volatility. These treasury companies represent a beta play on Bitcoin and so that's attractive.”
This trend indicates a rotation of capital from Bitcoin to Ethereum, as institutions seek higher returns through more volatile assets. Matt Hogan concurs, emphasizing the ongoing alt season in traditional finance (TradFi), where profits from Bitcoin investments are being funneled into Ethereum and other altcoins.
4. The Emergence of Treasury Companies and Dedicated Investment Funds
The discussion highlights the rise of treasury companies like Tom Lee’s and the formation of specialized investment funds focused on cryptocurrency. Iago mentions that firms like Pantera are raising funds specifically to invest in these treasury companies, marking the early stages of this trend.
Iago [07:48]: “We're starting to see dedicated capital specifically to this play. And so we're very, it's remarkable, but we're actually in the early innings, I think.”
Matt Hogan points out that this influx of capital is creating a self-reinforcing loop, where increased demand drives up prices, attracting more investment, and thus perpetuating the cycle.
5. Regulatory Hurdles: SEC's Indefinite Pause on Bitwise ETF
A significant portion of the episode addresses the SEC's setback in approving the Bitwise ETF, which was poised to offer broad crypto exposure. Matt Hogan expresses disappointment over the SEC's decision to place an indefinite pause despite the ETF receiving staff-level approval.
Matt Hogan [16:14]: “We've been working to create this ETF since 2017, and it won approval at the staff level of the SEC. And then there is this weird thing in the SEC where a single commissioner can effectively pocket veto a staff decision.”
The discussion explores potential reasons behind the SEC's actions, such as the wait for generic listing standards that would allow broader asset inclusion within ETFs. Matt Hogan remains hopeful for a resolution by the end of the year, emphasizing the importance of regulatory clarity for the continued integration of crypto into TradFi.
6. Bridging Traditional Finance and Crypto Ecosystems
The interplay between TradFi and crypto is a recurring theme. Iago elaborates on how ceFi (Centralized Finance) and deFi (Decentralized Finance) are merging, creating a three-pool ecosystem that includes TradFi, DeFi, and CeFi.
Iago [13:45]: “There's a huge new pool of capital. But money will slosh. Any dislocations that arise between these two will be Arbed away.”
This convergence facilitates greater liquidity and investment opportunities, breaking down the barriers that once separated traditional financial institutions from the cryptocurrency market.
7. Crypto in Retirement Accounts: A Game Changer
The episode delves into the potential impact of crypto integration into retirement accounts. Scott Melker discusses recent legislative moves allowing cryptocurrencies like Bitcoin and Ethereum to be included in IRAs, Roth IRAs, and 401(k)s.
Scott Melker [09:00]: “You're going to literally apparently be able to do that in your normal IRAs. I privately have had a conversation with a few of the bigger platforms and they think this is coming in months and are building for it.”
Matt Hogan underscores the significance of this development, predicting a massive influx of capital into crypto assets within retirement accounts. He warns that while this will drive prices up, it may also lead to decreased trading volume as funds become part of long-term, tax-advantaged accounts.
Matt Hogan [10:48]: “There are going to be like two and a half percent Bitcoin and then every week or every two weeks, 20 million Americans are going to invest two and a half percent of their wealth into Bitcoin and that's going to crush the volume.”
8. Market Analysis and Current Sentiment
In the latter part of the episode, Dan provides a market analysis, noting that Bitcoin is currently trading sideways, and altcoins are experiencing significant pullbacks. He emphasizes the importance of daily higher lows for bulls to confirm ongoing uptrends.
Dan [29:08]: “The bulls are hoping that the lows from yesterday or early this morning are those daily higher lows. The bull still have some proving to do, but we're still just waiting for bitcoin to give us direction.”
Dan also touches on the performance of specific sectors like psychedelics and cannabis, highlighting that while psychedelics are showing strong consolidation patterns, cannabis remains volatile and lacks positive momentum.
9. Conclusion: Navigating a Transformative Crypto Landscape
The episode wraps up with reflections on the dynamic nature of the crypto market, the ongoing challenges with regulatory bodies like the SEC, and the transformative potential of integrating crypto into mainstream financial systems. Guests reiterate their bullish stance on Bitcoin and Ethereum, supported by institutional investments and evolving financial products.
Matt Hogan [23:05]: “For people who have large positions, asset managers will develop customized strategies one on one for them.”
As the crypto ecosystem continues to mature, the convergence of TradFi and crypto, coupled with regulatory developments and institutional interest, positions the market for significant growth and transformation in the coming years.
Notable Quotes:
- Matt Hogan [01:26]: “We have a high degree of confidence we're going there.”
- Scott Melker [03:48]: “Tom Lee's token went up 3,800% in five days on the idea that they were going to buy Ethereum.”
- Matt Hogan [03:07]: “We've done 4.4 billion in inflows into ETH ETFs this month. Yeah, there's my Ethereum demand shock.”
- Iago [13:45]: “There's a huge new pool of capital. But money will slosh.”
- Matt Hogan [10:48]: “20 million Americans are going to invest two and a half percent of their wealth into Bitcoin and that's going to crush the volume.”
This episode provides a comprehensive overview of the current bullish trends in Bitcoin and Ethereum, the strategic movements of institutional investors, and the intricate dance between regulatory bodies and the evolving crypto landscape. Whether you're a seasoned investor or new to the crypto space, the insights shared by Scott, Matt, and Iago offer valuable perspectives on the future trajectory of these leading cryptocurrencies.