Bitcoin Could Hit $80K If the Market’s ‘Animal Instincts’ Awaken
Date: 2024-10-10 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS
Bitcoin could reach a record $80,000 before the end of the year under certain conditions, Matt Hougan, chief investment officer at Bitwise, said in a note to investors on Oct. 9.
The Impact of the U.S. Election
Hougan said that if the U.S. election ends in anything other than a Democratic sweep, Bitcoin could rise to $80,000. The situation in the upcoming election is more complex than a simple fight between crypto-friendly Donald Trump and neutral Kamala Harris. According to Hougan, there are differences in the Democratic Party regarding cryptocurrencies, from Senator Elizabeth Warren’s tough stance to Congressman Ritchie Torres’s active support for blockchain technologies.
If the Democrats do not take control of both the White House and both houses of Congress, Hougan expects them to take a more neutral stance towards the crypto sector. He pointed out that the main thing for Bitcoin to grow is for politicians not to interfere with the development of the market.
Hougan also cited data from the Polymarket forecasting platform, according to which the chances of a complete victory for the Democrats are 20%, and for the Republicans - 33%.
Economic situation
Hougan named economic conditions as another important factor for Bitcoin’s growth. He expects the US Federal Reserve to cut rates by 50 basis points by the end of the year and that China will continue to support its economy.
Hougan noted that markets are already expecting such measures, and if they are adopted, this could lead to a sharp increase in Bitcoin in the fourth quarter. Otherwise, the market may face disappointment.
Cryptocurrency Market Stability
Another important aspect is stability within the cryptocurrency sector itself. Hougan emphasized that the absence of major shocks, such as hacker attacks or lawsuits, will also play a role in the possible growth of Bitcoin.
Awakening the "animal instincts" of the market
While Bitcoin's success does not directly depend on other cryptocurrencies such as Ethereum or Solana, Hougan noted that positive market sentiment can further enhance Bitcoin's growth. He also expressed the opinion that Bitcoin could reach $100,000 within a few months if the so-called "animal instincts" - optimism and a desire to invest - appear in the market.
Hougan believes that such sentiments have been weakly expressed this year, with the exception of Bitcoin. However, the growth of stablecoins and the development of new blockchain projects can pave the way for a further increase in the Bitcoin rate.
