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Bitwise CIO says Bitcoin can still reach its all-time high and even pass it before the year ends, unless the Democratic Party sweeps the balance of power in this election. Kostenlose Bilder mit KI/flickr

KEY POINTS

  • Hougan noted the disparity in crypto views among Democrats
  • He compared such views to the GOP, wherein many have already expressed support
  • Hougan noted that for $BTC to thrive, the cryptocurrency should get politicians 'out of the way'

Bitcoin has been struggling to approach its all-time high (ATH) above $73,000 amid multiple economic and geopolitical headwinds. But an industry expert believes the world's largest cryptocurrency can still hit its ATH and even surpass it before the year end under certain conditions.

In a Wednesday blog post, Bitwise Asset Management chief investment officer Matt Hougan explained why he thinks BTC prices can still hit $80,000 by year-end 2024.

A $BTC Surge may be Stunted by a Democratic Sweep

Bitcoin has increasingly become a central topic in politics in recent months, specifically among Republicans. The broader crypto community has welcomed forward-looking comments from politicians from both the Democratic and Republican parties, but there is apparent imbalance in the number of Dems and GOP candidates who have expressed support for crypto and $BTC.

For Hougan, the current scenario may affect Bitcoin prices throughout the end of the year. "The U.S. election is a big deal for crypto. Most people assume it's a binary outcome: Trump = Good, Harris = Bad," he wrote, noting that $80,000 Bitcoin is possible unless Democrats win by a "sweep," a term used to describe a party's overwhelming victory.

He believes Republican wins will play out well for the crypto industry, given the party's "strong and growing advocacy" for blockchain technology and digital assets.

On the contrary, "the Democratic Party has disparate views on crypto," he argued. He pointed to Sen. Elizabeth Warren of Massachusetts' anti-crypto army, and Rep. Ritchie Torres of New York's pronounced support for the sector.

What Bitcoin Needs for a Surge

Unlike other analysts who have been more direct about their thoughts on Bitcoin surging if Republican presidential candidate Donald Trump wins, Hougan has been more neutral.

"To thrive, Bitcoin doesn't need politicians. It just needs them to get out of the way. And barring a Democratic sweep of both houses of Congress and the White House, I suspect they will, with the Democrats taking a more neutral approach to the industry," he wrote.

He went on to conclude that a "bending" attitude toward crypto from the Democratic party should be enough to push $BTC prices to around $80,000.

What Crypto Bettors Think

On Polymarket, where crypto holders use tokens to bet on future events, it appears the Republican party is safe. The event contract on the balance of power in this election reveals that as of early Wednesday, crypto bettors have the GOP commanding a sweep by 36%, while a Democratic sweep is at 19%.

The figures could be largely due to the contract asking crypto users which party they think will have control of the Senate. Bettors have the Republicans in the lead with a 74%, while they have Dems behind with 27% odds of taking the Senate.

Bitcoin is currently trading below $61,000.

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