$BTC
The price of Bitcoin exceeds $110,000 after hitting new highs, can it reach $120,000 this month?
The price of Bitcoin exceeds $110,000 after hitting new highs, can it reach $120,000 this month?
Cryptonews - The recent surge in Bitcoin's price appears to be supported by a combination of factors including reduced macroeconomic concerns, renewed institutional investments, and an increase in risk-friendly environments.
Key points:
The price of Bitcoin successfully broke its recorded highs after its upward surge of over 40% in 6 weeks.
The easing of trade tensions and U.S. trade deals has opened investors' appetites for risk.
The continued influx of additional investments into Bitcoin ETFs suggests that the upward wave has not yet reached its peak.
Bitcoin’s price successfully broke its previous highs, recording $111,861.22 this Thursday morning, marking a strong surge that pushed it up by over 40% in the last 6 weeks due to the return of investments to the crypto sector, thanks to easing trade tensions in the U.S.; moreover, the increase in investments flowing into Bitcoin exchange-traded funds (ETFs) and the opening of short positions worth $1.2 billion suggest exciting events are imminent.
These increases followed a sudden truce regarding tariffs between Washington and Beijing and the reaching of a limited trade agreement with the UK, which made macroeconomic prospects brighter, especially with Bitcoin ETF providers continuing to withdraw additional amounts from the circulating Bitcoin supply and the concentration of open short positions around $108,000, driving many analysts to predict that squeezing these short positions could quickly push the price of BTC towards $120,000.
Crypto markets surge amid Trump's trade deals
Positive momentum increased after President Trump toned down his hostility regarding tariffs in recent days, indicating his openness to entering into new trade deals and easing tensions with key partners, prompting this political shift to open investors' appetites for risk, making Bitcoin and prominent alternative currencies the biggest direct beneficiaries of this shift. Earlier, in May, the United States and China announced that they had reached a bilateral agreement to temporarily reduce tariffs on exchanged goods, indicating a decrease in trade tensions between the two countries.
The agreement was announced through a joint statement in Geneva, which grants the two countries a 90-day period to negotiate further economic cooperation. Under this agreement, the United States will reduce tariffs on Chinese imports from 145% to 30%, while China will lower its tariffs on American goods from 125% to 10%.
In summary, the scenario of Bitcoin continuing to record new highs has its foundations; if bulls (the buyers) maintain control and macroeconomic conditions remain stable, especially with pressure on the Federal Reserve to lower interest rates due to weak demand for long-term bonds, reaching a Bitcoin price of $120,000 will be a very realistic target.