The cryptocurrency world is abuzz with speculation as the US presidential election draws near. Jeff Park, Head of Alpha Strategies at Bitwise, has made a bold prediction: Bitcoin (BTC) could skyrocket to $92,000 if Donald Trump emerges victorious.
Park’s prediction is based on a unique approach. Using a model similar to merger arbitrage, he correlated Bitcoin’s price movements with Trump’s election odds, which are currently at 63.7% according to Polymarket. His analysis suggests a Trump win could significantly boost Bitcoin’s price, potentially pushing it to the $92,000 mark.
This forecast is not entirely out of left field. In September, analysts at Bernstein also predicted a “Trump Trade,” suggesting that Bitcoin could climb to $80,000–$90,000 during the final quarter of the year.
Park’s prediction aligns with the bullish outlook shared by Bitwise’s Chief Investment Officer, Matt Hougan, who has forecast Bitcoin reaching six figures by 2025. Hougan attributes this optimistic view to factors such as Bitcoin’s recent halving event and favorable market conditions expected in late 2024. He also emphasizes the growing institutional interest in Bitcoin, particularly with Bitcoin spot ETFs gaining traction faster than any other new ETF in history.
The upcoming Benzinga Future of Digital Assets event on November 19 promises to delve deeper into Bitcoin’s increasing influence as an institutional asset class.
While the correlation between a Trump victory and Bitcoin’s price is intriguing, it’s essential to remember that market predictions are inherently uncertain. However, the growing institutional interest in Bitcoin and its potential for future growth continue to make it a fascinating asset to watch.