Bitcoin is currently trading below $104,000, down about 4% in the past 24 hours. This drop occurred after Israel launched an attack on Iran's nuclear sites on June 12, causing Bitcoin to fall from $107,000 to $103,000.
In just one day, about $636 million was liquidated from the market. Now, there are concerns about Bitcoin sliding further down to $102,000 or even $101,000.
Despite this bearish trend, many analysts still believe that Bitcoin could reach $200,000 by the end of the year. But the big question is — how will Bitcoin achieve this and what are the key reasons behind such a bold prediction?
Why can Bitcoin reach $200,000 by the end of the year?
In a recent episode, Scott Melker discussed with Alice Liu from CoinMarketCap the strong reasons why Bitcoin could soon rise to $200,000. Liu stated, "The cryptocurrency market is a golden opportunity. You need a catalyst like this to encourage those outside the cryptocurrency space to consider it."
Large companies are buying Bitcoin: Companies and institutions from the U.S., Europe, Japan, and other regions are adding Bitcoin to their corporate treasury reserves. The increased demand from businesses is putting additional buying pressure on the market while supply remains constrained, especially after the recent Bitcoin halving.
Supply is dwindling: Bitcoin miners are currently selling very little to the market, averaging only about 500 BTC per day. With more individuals and companies wanting to buy and fewer Bitcoins available, this supply-demand imbalance naturally pushes prices higher.
Bitcoin is considered digital gold: Many investors today view Bitcoin as a long-term store of value, similar to gold. Large funds, corporate treasuries, and even some governments are considering Bitcoin as a reserve asset. This confidence is helping to build a solid foundation for Bitcoin's next major price surge.
