Bitwise CIO Matt Hougan Outlines Key Conditions for Bitcoin to Reach $80,000 by Year-End
2024-10-09

Matt Hougan, Chief Investment Officer at Bitwise Asset Management, shared his thoughts on the crypto market in a memo published on October 9, detailing what needs to happen for Bitcoin to hit $80,000 by the end of the year. According to Hougan, several factors must align for this price target to be achieved, with one additional element potentially pushing Bitcoin even higher.
Hougan first emphasized the role of the U.S. election in determining Bitcoin’s trajectory. He explained that any result other than a complete “Democratic sweep” would be beneficial for the flagship cryptocurrency. While Republican victories are typically seen as favorable for Bitcoin due to the GOP’s pro-crypto stance, Hougan believes that even a more neutral approach from Democrats could help. He pointed out that recent comments by Representative Maxine Waters, who described crypto as “inevitable,” indicate a potential shift in the party’s stance. Hougan added that the threat to Bitcoin would come primarily from Democrats aligned with Senator Elizabeth Warren, whose “Anti-Crypto Army” has pushed for tighter regulation.
Economic conditions are another major factor Hougan highlighted. He explained that Bitcoin’s popularity is rooted in a widespread distrust of government-controlled money, which has been a key driver of the cryptocurrency’s appeal since its creation. Hougan pointed to recent events, such as the Federal Reserve’s rate cuts and China’s massive 2 trillion yuan stimulus, as catalysts for Bitcoin’s recent growth. He noted that the market is now anticipating two more rate cuts from the Fed before the end of the year, along with additional global stimulus measures. According to Hougan, if these conditions are met, Bitcoin could experience a strong fourth-quarter rally.
Hougan also stressed the importance of avoiding negative surprises in the crypto market. He noted that unexpected events—such as major hacks, lawsuits, or the sudden release of previously locked Bitcoin from sources like Mt. Gox—have historically disrupted Bitcoin’s price movements. Hougan warned that if similar events occur again, they could keep Bitcoin’s price range-bound, preventing it from reaching the $80,000 target. However, he is optimistic that the absence of such surprises will allow the cryptocurrency to break out.
Lastly, Hougan suggested that a rally in the altcoin market could further accelerate Bitcoin’s rise. While Bitcoin doesn’t rely on altcoins for its long-term success, Hougan argued that excitement in other areas of the crypto market, such as stablecoins and new blockchain projects, could create a favorable environment for Bitcoin. He noted that projects like Sui and Aptos and innovations like Babylon’s Bitcoin staking platform are gaining momentum and could contribute to a broader crypto rally.
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