Some analysts may argue that Bitcoin's price, even at $110,000, has not yet begun the "real" or "crazy" rise that many expect, and there are several possible reasons for this:
1. Periodic corrections and profit taking:
♦️After any significant rise in Bitcoin's price, periods of correction or price decline typically occur. This is normal in financial markets, as investors take profits after making significant gains.
♦️The market has already experienced a period of volatility due to "greed" and placing too much leverage on positions, which requires the market to balance before continuing to grow in the long term.
2. Macroeconomic factors:
🌟Inflation concerns and central bank policies: Inflation remains a challenge in many major economies, making central banks like the US Federal Reserve cautious about cutting interest rates. Higher interest rates make riskier assets like cryptocurrencies less attractive.
🌟Geopolitical pressures and trade tariffs: Geopolitical tensions or major economic decisions, such as the imposition of tariffs, may affect investor sentiment and cause them to withdraw capital from riskier assets.
3. Halving Effect and Market Expectations:
✅Bitcoin halving occurs approximately every four years, reducing the reward for mining new blocks by half. Historically, halvings have been followed by periods of significant price increases due to scarcity. However, the impact may not be immediate, and it may take time for the market to absorb this change and translate into massive price increases.
✅Market forecasts indicate a continued upward trend in the long term, with some predicting that Bitcoin's average price will reach $123,013 in 2025 and $226,952 in 2026. This means that the expected significant rise may be gradual rather than explosive.
4. Weak retail demand:
Some analysts suggest that Bitcoin's bullish structure may weaken, with a focus on the $100,000 level, due to declining demand from individual (retail) investors. Significant gains often require widespread participation from these investors.
5. Institutional factors and accreditation:
👈Despite the growing institutional interest and ETFs in Bitcoin, these factors may need more time to fully bear fruit in driving the price to huge jumps.
👈Some sources expect that the global adoption of the currency and the development of blockchain infrastructure will contribute to exponential price growth in the long term, but these processes take time.
💡💡In general, reaching $110,000 is a significant achievement for Bitcoin, but many believe that the “real rally” that will take it to much higher levels (such as $200,000 or more) has yet to begin. This prediction is based on the nature of market cycles, the long-term effects of the halving, and expectations of a massive increase in institutional and global adoption, taking into account macroeconomic factors that may affect its path in the short term.😇😇
