Bitcoin's prices have captured headlines after hitting over $100,000. However, Bitwise CEO Hunter Horsley points out two major structural obstacles ahead.
Competition with High-Yield Alternatives
Horsley warns that investors looking for high returns may turn their attention to emerging decentralized finance projects, layer-2 tokens, and new blockchains, which could divert capital away from Bitcoin.
"Most investors are constantly presented with opportunities that could 10x," he noted.
Declining Appeal of Bitcoin as an Asset
According to Horsley, there is a gradual erosion of the narrative around Bitcoin as an 'apolitical store of value.' He believes that real competitors for Bitcoin will be government bonds and treasury bills, which have distinct advantages.
Comparison of Bitcoin with Gold and US Equities
Despite current challenges, Bitcoin has significantly outperformed both gold and US equities over the past year: a growth of approximately 58% compared to 46% for gold and 11% for the S&P 500.
Horsley sees the trends of high-yield tokens and bond competition as not urgent threats today, but they could emerge in the future.
Currently, Bitcoin is firmly establishing itself, but its price may face new challenges in the coming months if demand for alternative investments remains high.
