Bitwise CIO: Bitcoin Needs to Meet Three Conditions to Break $80,000

ChainCatcher news, according to The Block, Bitwise CIO Matt Hougan stated that the three conditions necessary for Bitcoin to rebound to over $80,000 in the fourth quarter are the results of the U.S. elections, the economic situation, and no major surprises in the crypto industry. However, to "fully rise" to $100,000 in just a few months, a broader cryptocurrency rebound is needed to boost market sentiment. By the end of 2023, Bitwise predicts that Bitcoin will double from its then price of $42,400, reaching over $80,000 by the end of this year, with the approval of a U.S. spot Bitcoin ETF and Bitcoin's fourth halving event as catalysts.

In a memo to clients on Wednesday, Hougan maintained this prediction, stating that the ideal election outcome is to avoid a complete Democratic victory. He believes that a Republican win would be beneficial for the crypto industry, but there are mixed attitudes towards cryptocurrencies within the Democratic Party. Current prediction markets show a 53% chance of Trump winning. Economically, Hougan suggests that two rate cuts totaling 50 basis points are needed before the end of the year, along with additional fiscal stimulus from China. He emphasized that people's trust in Bitcoin stems from distrust in government monetary management. Additionally, the crypto industry needs to remain stable, avoiding major hacks, lawsuits, or sudden influxes of locked coins into the market.