Bitcoin never ceases to surprise. As some began to get used to its roller coaster, the flagship cryptocurrency reached a new milestone by reaching an all-time high of $93,500. Analysts, meanwhile, are buzzing and are already predicting a six-figure Bitcoin in the near future. But what is really going on behind this price surge?
A favorable economic context for Bitcoin
Bitcoin's recent rise coincides with the release of the latest US inflation data. Despite an increase in the Consumer Price Index (CPI) of 2.6% in October, in line with expectations, Bitcoin held up.
Better yet, he took advantage of this announcement to consolidate his position above $90,000. Markets appear to be betting on another interest rate cut by the Federal Reserve in December, with a probability of over 80% according to the FedWatch Tool. CME Group.
Quinn Thompson, founder of hedge fund Lekker Capital, doesn't mince his words: “See you at $100,000 next week! “.
For his part, Michaël van de Poppe, a recognized trader and analyst, shares this optimism and emphasizes that other economic data, such as the Producer Price Index (PPI), could further reinforce this upward trend.
But that's not all. Ryan Lee, Chief Analyst at Bitget Researchprovides an enlightening analysis:
Bitcoin recently surpassed $93,000, driven primarily by a continued net inflow of $4 billion from traditional funds represented by Bitcoin ETFs over the past five trading days.
Towards new heights: a question of time?
Market experts agree that the $95,000 mark is a key supply zone, according to order book analysis. However, the enthusiasm does not wane.
Onchained, contributor to the on-chain analysis platform CryptoQuant, estimates that Bitcoin could “potentially rise from its current level of $93,000 to a peak between $180,000 and $200,000”. Just that!
Ryan Lee adds a layer of optimism by discussing the political outlook:
President-elect Trump hinted at the Bitcoin conference in Nashville that he might consider making Bitcoin a national reserve asset if he takes office, which would elevate BTC to the status of gold.
Such a move could trigger similar moves in other countries, leading to net inflows of hundreds of billions of dollars and propelling Bitcoin to new highs.
However, caution is the mother of safety. There are many indicators to monitor. If the funding rate for long positions exceeds a certain threshold, this could signal a potential adjustment. Likewise, a successful breakout of the $94,000 threshold could result in the liquidation of over $1 billion in short positions, thereby accelerating the market's rise.
Bitcoin is on an impressive run, and analysts are not hiding their enthusiasm. Six figures seem within reach, but as always with cryptocurrency, it's best to keep a watchful eye. After all, as the saying goes, “to plan is already a little to control”. And who knows, maybe next week we'll all toast Bitcoin at $100,000!
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