Bitrabo Editorial
Matt Hougan, the Chief Investment Officer at Bitwise, has shared a new analysis suggesting that Bitcoin’s price may reach $80,000 by the year’s end. He pointed to crucial factors that contributed to Bitcoin’s previous all-time high in March and explained why a new surge could occur.
Key Drivers for Bitcoin’s $80,000 Target
On October 9, Hougan published a blog post discussing Bitcoin’s potential rise. He notes that the first quarter of 2024 could be particularly beneficial for Bitcoin, as its value might jump past $73,000, influenced largely by the introduction of Spot Bitcoin Exchange Traded Funds (ETFs).
Hougan believes Bitcoin has a solid chance to surpass its highest recorded value and reach $80,000 by the end of 2024, provided three main conditions are met.
One significant factor highlighted by Hougan is the outcome of the upcoming U.S. Presidential elections. He suggests that a Republican victory could positively affect the cryptocurrency sector, especially given the support from former President Donald Trump for digital assets.
In contrast, he points out that support for crypto from the Democratic party has been less pronounced, particularly due to figures like Senator Elizabeth Warren, known for her negative views on cryptocurrencies and policies that could hinder the industry.
Based on his observations, Hougan concludes that for crypto to thrive, political interference should be minimized. He predicts that as long as there isn’t a Democratic sweep across Congress and the White House, Bitcoin’s price could soar to $80,000.
Additionally, Hougan proposes that two interest rate cuts and global stimulus measures could act as major catalysts for Bitcoin’s climb to $80,000. He believes that if the Federal Reserve implements an extra 50 basis points in easing, coupled with another stimulus package from China, a significant rally for Bitcoin could be expected in the fourth quarter.
Staying Clear of Negative Shocks
In his analysis, Hougan emphasized the importance of a stable market free from bearish surprises, such as hacks or sudden legal challenges that typically exert downward pressure on Bitcoin’s price. He noted that events like the release of locked Bitcoin from the Mt.Gox fiasco can result in lackluster price movements.
For instance, BTC struggled to make significant gains following the release of those locked coins. Hougan anticipates that if 2024 can proceed without major negative incidents, Bitcoin could realistically hit the $80,000 mark and possibly climb even higher.