- Bitcoin (BTC) could hit $80,000 by year-end if there are no major market disruptions.
- Political factors may impact Bitcoin’s trajectory, especially regarding the upcoming U.S. elections.
- Additional rate cuts and fiscal stimulus could further drive Bitcoin’s price upward.
Bitcoin (BTC) has recently captured the attention of investors, and predictions about its price trajectory are increasingly optimistic. According to Bitwise Chief Investment Officer Matt Hougan, Bitcoin could reach $80,000 by the end of 2024, contingent upon a few pivotal factors.
Of these, the outcome of the U.S. elections is the most important. A Democratic sweep, which could bring more regulation into the crypto space, is considered negative. If the party takes a more neutral approach, though, the market could have an upward response, allowing BTC to jump up toward its high estimate.
He further highlights the political divide amongst Democrats with regard to crypto, where Senator Warren is opposed to it, and Representative Torres is for it. A balanced political environment can actually help BTC. This is so because his probability for a sweep by the Democrats is only 20%, meaning the path ahead for BTC is quite good.
Economic Factors Driving Bitcoin’s Market Growth
Commonly, economic factors tend to play a leading role in the development of Bitcoin’s market. First of all, one should point out that most of the time, a hike in BTC’s price happened due to the Federal Rate Cut combined with Global Stimulus. For example, this year, when BTC surged, it was because of the 50 bps cut earlier this year. Now, investors are expecting more easing from the Fed and fiscal stimulus from China, two things that could boost market sentiment.
Merging the two economic strategies could also boost investor interest in Bitcoin, Hougan added, since more capital will be attracted into the market. If both expected cuts and stimulus measures do occur, a strong Q4 rally could also propel Bitcoin to its ambitious price target.
Stable Market Key for Bitcoin’s $80K Target
However, to reach these price targets, BTC requires a stable market environment devoid of big negative surprises. Events in the history of cryptocurrency, such as huge hacks or unexpected filings of lawsuits, have previously led to the destabilization of the market, which surely had an impact on BTC’s fluctuating value. It will have to move in a straight line and not be overcome by any obstacles before it reaches this mark of $80,000.
While the long-term success of BTC is independent of other cryptocurrencies, a friendly crypto market can help feed short-term gains. With the cryptocurrency up 49% this year, investor sentiment is cautiously optimistic going into the end of 2024, preparing the stage for a rally.
Related Reading | UN Endorses Ripple and Stellar for Global Payments Network