Bitcoin Will Go To $85,000 Before a Dip but the Real Story Is Its Role in the AI Economy, Expert Argues

Bitcoin (CRYPTO: BTC) added about 20% in market capitalization in a week, yet a prominent expert argues its investment case goes far beyond a reflexive short squeeze.

Speaking with Scott Melker in a podcast on Sunday, Abra CEO Bill Barhydt pointed to U.S. Treasury efforts to support the long end of the bond market, a weaker dollar and a changing yield curve as signs that financial conditions are becoming more supportive of risk assets.

Barhydt sees Bitcoin reaching $85,000 before a leverage reset pulls it toward the low $70,000s, followed by a gradual climb to $100,000 to $110,000.

He also expects altcoins to begin outperforming once Bitcoin moves beyond that initial leverage-driven phase.

Why BTC Sits Under An AI-Driven Financial System

Barhydt’s longer-term thesis goes well beyond Bitcoin price action.

Abra has launched USDAF, a yield-bearing stablecoin token, and is testing BTCAF, a Bitcoin-based yield product. Barhydt said the broader goal is to create cross-chain assets that can function as collateral across lending, perpetual futures and other financial markets.

Barhydt believes stablecoins may initially dominate machine payments, but Bitcoin could eventually emerge as the preferred reserve collateral underneath those transactions.