- Matt Hougan has mentioned three components will push Bitcoin to $80,000 by the tip of 2024
- Hougan indicated that the US election is an enormous deal for crypto
- Altcoins might additionally assist bolster the melt-up case for Bitcoin attaining new highs
Bitwise’s CIO has indicated three issues that might see Bitcoin attaining highs of $80,000 by the tip of 2024.
In a client memo, Matt Hougan mentioned that the US election, the financial system, and no unfavourable crypto surprises are what might even see a “melt-up” of Bitcoin to commerce above $80,000 over the past quarter of 2024.
On the finish of 2023, Bitwise predicted that Bitcoin would reach $80,000. He additionally indicated that spot Bitcoin exchange-traded funds (ETFs) will likely be authorized.
In his newest memo, Hougan stood by his perception that Bitcoin will attain all-time highs. Writing concerning the US election, the CIO acknowledged that whereas a Republican win could be good for the crypto market “given the GOP’s robust and rising advocacy for the house,” the election is “extra nuanced on the Democratic facet.”
He added that the Democrats have “disparate views on crypto” from Senator Elizabeth Warren’s “Anti-Crypto Military” to Consultant Ritchie Torres’ deep help of the market.
“To thrive, bitcoin doesn’t want politicians,” Hougan mentioned. “It simply wants them to get out of the way in which. And barring a Democratic sweep of each homes of Congress and the White Home, I believe they’ll, with the Democrats taking a extra impartial method to the business.”
Latest information exhibits that former US President Donald Trump leads the election towards Vice President Kamala Harris on Polymarket, the decentralized prediction market platform.
Lack of belief
Turning to the financial system, Hougan acknowledged that the US Federal Reserve’s rate cuts by 50 basis points and China releasing two trillion yuan in financial stimulus in late September fueled the crypto rally.
Hougan added that the market expects an additional 50 foundation factors by the tip of 2024 from the Federal Reserve and extra fiscal stimulus in China.
Seeking to his third level, Hougan indicated {that a} Bitcoin rally to $80,000 could be achieved if there are not any main surprises, no lawsuits, and no locked cash coming into the market. Nevertheless, he famous that the crypto business is stuffed with surprises which have impacted the market.
“Over the previous few quarters, the discharge of beforehand locked-up bitcoin from failed trade Mt. Gox and from authorities coffers has contributed to retaining us range-broad,” he mentioned.
Altcoins might assist
In Hougan’s view, except for the three components above, a broader rally in crypto will assist seal the deal of Bitcoin reaching $80,000.
“Bitcoin doesn’t want Ethereum, Solana, or novel altcoins for its long-term success,” he added. “But when we’re going to get a full-on melt-up within the short-term – say, a rip to $100,000 in only a few months – it will assist to have a little bit of pro-crypto sentiment sweep the market.”
Whereas he believes these crypto “animal spirits” have been in brief provide throughout 2024, he sees them rising in areas akin to stablecoins and tasks together with Sui, Aptos, and Monad.
“Robust and sustained momentum in these areas would bolster the melt-up case,” Hougan mentioned.