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Matt Hougan, the Chief Investment Officer (CIO) of Bitwise has released a new report predicting that the price of Bitcoin (BTC) could skyrocket to $80,000 before the end of the year. Highlighting key dynamics behind Bitcoin’s March all-time high, the Bitwise CIO has disclosed several factors that could act as a major bullish catalyst, driving Bitcoin to an even higher ATH.
Factors That Could Propel Bitcoin To $80,000
On October 9, Hougan released a blog post highlighting Bitcoin’s next bullish target. According to the analyst, the First Quarter (Q1) of 2024 was an extremely positive period for Bitcoin, with its price surging to new all-time highs of above $73,000, driven by the demand that followed the launch of Spot Bitcoin Exchange Traded Funds (ETFs).
Presently, Hougan believes that BTC has a chance to beat its current all-time high and push towards $80,000 before the end of 2024. He outlined three major conditions required for the cryptocurrency to outperform this year.
According to Hougan, the results of the upcoming United States (US) Presidential elections are a critical factor that has the power to influence the dynamics of Bitcoin in the market. He believes that a Republican win would be a positive boost for the crypto industry, considering Former US President Donald Trump’s growing support and advocacy for the digital asset space.
On the other hand, the Bitwise CIO disclosed that the public support for cryptocurrencies for the US Democratic party has been more subtle. For instance, Senator Elizabeth Warren, who is a Democrat, is renowned for her anti-crypto stance, constantly aiming to deploy policies that would put a strain on the crypto industry.
Based on this, Hougan has concluded that the crypto industry does not need politicians, but needs them out of the way for the market to thrive. He predicts that by barring a Democratic sweep of both houses of Congress and the White House, BTC could see its price rallying to $80,000.
Moving forward, Hougan suggests that two rate cuts and a global stimulus could serve as a powerful catalyst for Bitcoin’s price surge to $80,000. The Bitwise CIO posits that an additional 50 bps in easing from the Federal Reserve (FED) as well as another fiscal stimulus from China could drive a major Bitcoin rally in Q4.
No More Bearish Surprises
In his blog post, Hougan underscored the necessity for the market to experience a period devoid of bearish surprises such as hacks, new lawsuits or the sudden release of previously locked coins into the market. The Bitwise CIO noted that these events tend to influence the price movements of Bitcoin significantly, often leading to downward pressure.
For example, BTC’s price has been relatively range-bound, failing to rally significantly following the release of the previously locked Bitcoin from the failed exchange, Mt.Gox. Based on this, Hougan has predicted that if the market can go through the year without any shocking events, Bitcoin could jump to $80,000 and beyond.
Featured image created with Dall.E, chart from Tradingview.com
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