Bitcoin’s Path To $80,000 “Melt-Up” In Q4 2024 – Details Inside
October 10 2024 - 5:00AM
NEWSBTC
In a recent memo shared with clients, Bitwise CIO Matt Hougan
emphasized several factors that could cause Bitcoin (BTC) to
“melt-up” to $80,000 in the last quarter of 2024. Factors To Propel
Bitcoin To $80,000 Hougan highlighted three essential conditions
that could push BTC to new all-time highs (ATH) in 2024. First, he
pointed to November’s upcoming U.S. presidential elections, which
could influence BTC’s future price trajectory. According to Hougan,
anything other than a Democratic sweep would benefit the top
cryptocurrency by market cap. Related Reading: Crypto Analyst: Bull
Market Hinges On This Indicator Reaching 45% In the memo, Hougan
explained that while many view the election as a binary choice –
with Republican candidate Donald Trump favorable for the crypto
industry and Democratic candidate Kamala Harris seen as detrimental
– the reality on the Democratic side is more nuanced. He said: 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. Hougan expressed confidence in the Republicans, stating
that a win for them would “undoubtedly” be positive for crypto.
However, he also referenced a recent comment by Democrat Maxine
Waters, who said that “crypto is inevitable,” suggesting that
Democrats may become more open to digital assets. Second, Hougan
brought attention to the US Federal Reserve’s (Fed) interest rate
cuts. On September 18, the Fed lowered key interest rates by 50
basis points (bps), sparking a crypto rally. Further, the People’s
Bank of China’s (PBoC) decision to inject economic stimulus into
the Chinese economy gave more fuel to digital assets to propel.
Hougan noted that the market expects another 50 bps rate cut from
the Fed before year-end, along with additional Chinese fiscal
stimulus. The crypto market could see a strong Q4 2024
rally if both occur. Finally, Hougan mentioned that a period with
no major surprises would support BTC’s potential rally to $80,000.
He concluded that negative surprises, such as a significant crypto
exchange hack, new lawsuits, or the release of previously locked
coins could derail this momentum. Key Ingredient For The Rip To
$100,000 BTC Hougan also stated that growing pro-crypto sentiment
would be necessary for BTC to reach the ambitious $100,000 target
in the coming months. Related Reading: Bitcoin Tumbles Following
Higher Than Anticipated US Core Inflation Data He recalled the
famous “DeFi summer” of 2020 as an example and envisions a similar
market-wide shift toward crypto, driven by the rising use of
stablecoins, high-throughput blockchains, and innovation in passive
yield solutions. In related news, CEO of crypto mining firm
CleanSpark, Zach Bradford, recently opined that Bitcoin could reach
as high as $200,000 in the next 18 months given the right
conditions. That being said, recent geopolitical escalations in the
Middle East can adversely impact risk-on assets such as stocks and
crypto in the short term. BTC trades at $61,999 at press time, down
1.4% in the last 24 hours. Featured image from Unsplash, chart from
Tradingview.com
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