Bitwise CIO Matt Hougan has outlined a potential “melt-up” scenario for Bitcoin (BTC), predicting the cryptocurrency could hit $80,000 by the end of 2024. In a memo to clients, Hougan identified three key factors that could drive Bitcoin to new all-time highs.
Firstly, the upcoming U.S. presidential election could influence BTC’s price. Hougan believes a Republican win, particularly if Donald Trump prevails, would be favorable for the cryptocurrency market. However, he noted that the Democratic stance on crypto is evolving, citing Democrat Maxine Waters’ statement that “crypto is inevitable.”
The Democratic Party has disparate views on crypto, from Senator Elizabeth Warren’s (D-Mass.) “Anti-Crypto Army” to Representative Ritchie Torres’ (D-N.Y.) deep support. The problem of the past four years is that the Warren wing has controlled policy and agency appointments, and that has created a hostile environment for the sector.
Bitcoin Could Reach $200K
Secondly, Hougan pointed to recent and expected interest rate cuts by the U.S. Federal Reserve. A September rate cut of 50 basis points triggered a rally in digital assets, and Hougan expects another cut before year-end. Additionally, China’s recent economic stimulus efforts could further boost the crypto market.
Lastly, Hougan emphasized the importance of a period without major negative events, such as crypto exchange hacks or legal issues, in supporting Bitcoin’s rise. He also stated that growing pro-crypto sentiment and technological advancements, like stablecoins and high-throughput blockchains, are essential for BTC to eventually hit $100,000.
In a related note, CleanSpark CEO Zach Bradford suggested Bitcoin could reach $200,000 within 18 months under favorable conditions. However, Hougan warned that geopolitical tensions, such as the ongoing conflict in the Middle East, could negatively impact risk assets like Bitcoin in the short term. As of press time, BTC is trading at $61,999, down 1.4% over the last 24 hours.
