Matt Hougan, chief investment officer (CIO) of Bit by bit has released a new report predicting that the price of bitcoin (btc) could skyrocket to $80,000 before the end of the year. Highlighting the key dynamics behind bitcoin's March All-Time HighBitwise CIO has revealed several factors that could act as a major bullish catalyst, driving bitcoin to an even higher ATH.
Factors that could push bitcoin to $80,000
On October 9, Hougan posted a bitcoin-and-beyond” rel=”nofollow noopener” target=”_blank”>blog post highlightingbitcoin/bitcoin-price-could-hit-100000/” rel=”nofollow noopener” target=”_blank”> 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 rising to new all-time highs above $73,000, driven by demand following the launch of Spot bitcoin Exchange Traded Funds (ETFs).
Currently, Hougan believes that btc has the opportunity to surpassed its current all-time high and move towards $80,000 before the end of 2024. He outlined three main conditions necessary for the cryptocurrency to outperform this year.
According to Hougan, the results of the upcoming United States (US) presidential election They are a critical factor that has the power to influence the dynamics of bitcoin in the market. He believes that a Republican victory would be a positive boost for the crypto industry, considering Former US President Donald TrumpThe growing support and advocacy of the digital asset space.
On the other hand, Bitwise's CIO revealed that public support for cryptocurrencies for the US Democratic Party has been more subtle. For example, Senator Elizabeth Warren, who is a Democrat, is known for her anti-crypto stance, and constantly seeks to implement policies that would put pressure on the cryptocurrency industry.
Based on this, Hougan has come to the conclusion that the crypto industry does not need politicians, but rather needs them out of the way for the market to thrive. He predicts that by avoiding a Democratic sweep of both houses of Congress and the White House, btc could see its price rise to $80,000.
Going forward, Hougan suggests that two rate cuts and global stimulus could serve as a powerful catalyst for bitcoin's price rise to $80,000. Bitwise's CIO posits that an additional 50 bp easing from the Federal Reserve (FED) as another fiscal stimulus from China could spur a major bitcoin rally in the fourth quarter.
No more bearish surprises
In his blog post, Hougan stressed the need for the market to experience a period without bearish surprises such as tricksnew demands or the sudden release to the market of previously locked coins. The Bitwise CIO noted that these events tend to significantly influence bitcoin price movements, often creating downward pressure.
For example,bitcoin-news/bitcoin-failed-attempt-to-break-64000-could-lead-to-a-disaster-analyst/” rel=”nofollow noopener” target=”_blank”> btc price has been relatively range-boundby failing to achieve a significant rally 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 make it 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
