- Matt Hougan has mentioned three components will push Bitcoin to $80,000 by the top of 2024
- Hougan indicated that the US election is a giant 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 would see Bitcoin attaining highs of $80,000 by the top of 2024.
In a consumer memo, Matt Hougan mentioned that the US election, the economic 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 attain $80,000. He additionally indicated that spot Bitcoin exchange-traded funds (ETFs) shall be authorised.
In his newest memo, Hougan stood by his perception that Bitcoin will attain all-time highs. Writing in regards to the US election, the CIO acknowledged that whereas a Republican win can be good for the crypto market “given the GOP’s strong and growing advocacy for the space,” the election is “more nuanced on the Democratic side.”
He added that the Democrats have “disparate views on crypto” from Senator Elizabeth Warren’s “Anti-Crypto Army” to Consultant Ritchie Torres’ deep help of the market.
“To thrive, bitcoin doesn’t need politicians,” Hougan mentioned. “It just needs them to get out of the way. And barring a Democratic sweep of both houses of Congress and the White House, I suspect they will, with the Democrats taking a more neutral approach to the industry.”
Latest information exhibits that former US President Donald Trump leads the election in opposition to Vice President Kamala Harris on Polymarket, the decentralized prediction market platform.
Lack of belief
Turning to the economic system, Hougan acknowledged that the US Federal Reserve’s price cuts by 50 foundation factors and China releasing two trillion yuan in financial stimulus in late September fueled the crypto rally.
Hougan added that the market expects an extra 50 foundation factors by the top 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 can be achieved if there aren’t any main surprises, no lawsuits, and no locked cash getting into the market. Nevertheless, he famous that the crypto trade is stuffed with surprises which have impacted the market.
“Over the past few quarters, the release of previously locked-up bitcoin from failed exchange Mt. Gox and from government coffers has contributed to keeping 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 need Ethereum, Solana, or novel altcoins for its long-term success,” he added. “But if we’re going to get a full-on melt-up in the short-term – say, a rip to $100,000 in just a few months – it would help to have a bit of pro-crypto sentiment sweep the market.”
Whereas he believes these crypto “animal spirits” have been briefly provide throughout 2024, he sees them rising in areas corresponding to stablecoins and tasks together with Sui, Aptos, and Monad.
“Strong and sustained momentum in these areas would bolster the melt-up case,” Hougan mentioned.
