Bitwise’s Chief Investment Officer, Matt Hougan, has suggested that Bitcoin could potentially reach new all-time highs of $80,000 this year, but only under certain conditions.
In a note to investors on Oct. 9, Hougan outlined the key factors that could impact Bitcoin’s upward trajectory, such as the outcome of the US election, economic conditions, and the overall stability of the cryptocurrency industry.
US elections
Hougan proposed that Bitcoin might surge to $80,000 if the results of the upcoming US election do not lead to a complete Democratic victory.
While many view the election as a choice between pro-crypto Donald Trump and ‘lukewarm’ Kamala Harris, Hougan explained that the situation is more nuanced. He highlighted the varying opinions within the Democratic party regarding the cryptocurrency industry, ranging from anti-crypto stances to strong support for the technology.
Hougan predicted that if the Democrats do not secure both the White House and Congress, they may adopt a more neutral stance toward the industry, which could benefit Bitcoin.
He cited data from the prediction platform Polymarket, showing the current odds of a Democratic sweep at 20% and a Republican sweep at 33%.
Economic conditions
Hougan also emphasized the importance of economic developments in driving Bitcoin’s potential rally. He anticipated further rate cuts from the Federal Reserve and additional fiscal stimulus from China by the end of the year.
He noted that market sentiment is reliant on these factors and expects a Q4 rally if the predicted rate cuts are implemented.
Stability in the crypto industry
Another crucial factor for Bitcoin’s potential rise to $80,000 is the stability within the crypto industry. Hougan stressed the need to avoid major disruptions such as hacks or legal issues that could negatively impact the market.
‘Animal spirits’
Hougan mentioned that while Bitcoin’s success is not dependent on other cryptocurrencies, positive sentiment in the broader crypto market could boost its performance. He suggested that if “animal spirits” sweep through the market, Bitcoin could potentially reach $100,000 in a short period.
Bitcoin Market Data
At the time of press 3:45 pm UTC on Oct. 9, 2024, Bitcoin is ranked #1 by market cap and the price is down 1.06% over the past 24 hours. Bitcoin has a market capitalization of $1.22 trillion with a 24-hour trading volume of $25.71 billion. Learn more about Bitcoin ›
Crypto Market Summary
At the time of press 3:45 pm UTC on Oct. 9, 2024, the total crypto market is valued at $2.15 trillion with a 24-hour volume of $64.85 billion. Bitcoin dominance is currently at 56.71%. Learn more about the crypto market ›
