Bitcoin to Rise to $85K Before Pullback, but Its Real Value Lies in AI Economy Role

Bitcoin's market cap grew about 20% in a week, but one prominent expert argues its investment thesis goes far beyond a reflexive short squeeze.

Abra CEO Bill Barhydt said on a Sunday podcast with Scott Melker that Treasury-backed efforts at the long end of the bond market, a weaker dollar, and shifts in the yield curve all point to financial conditions becoming more favorable for risk assets.

Barhydt expects Bitcoin to first rise to $85,000, then a leverage reset pulls it toward the low $70,000 range, before gradually climbing to $100,000–$110,000.

He also expects altcoins to start outperforming once Bitcoin gets past its initial leverage-driven phase.

Why BTC Sits Beneath an AI-Driven Financial System

Barhydt's long-term thesis goes far beyond Bitcoin price action.

Abra has launched USDAF and is testing BTCAF. Barhydt says the broader goal is to create cross-chain assets that can serve as collateral in lending, perpetual futures, and other financial markets.

Barhydt believes stablecoins may initially dominate machine payments, but Bitcoin could eventually become the preferred reserve collateral under these transactions.

As Bitcoin's volatility declines and cross-chain infrastructure improves, AI systems could hold BTC while borrowing or trading via dollar-denominated assets.

"Bitcoin becomes the highest-quality collateral," Barhydt said, arguing that its fixed supply could become increasingly attractive in an AI-driven economy.

Ethereum, Solana Have Specialized Use Cases

Barhydt expects Ethereum to remain important in institutional-grade blockchain adoption, while Solana could dominate consumer-facing applications and other networks develop specialized use cases.

He added that Ethereum's macro landscape is "as good as it gets," with the network still the preferred chain for institutional adoption.

Barhydt also said Solana has "won mindshare" in retail dApps due to its low cost and high performance.