As expectations grow that the price of Bitcoin (BTC) could reach 120 thousand dollars this year, analysts are pointing to 4 important factors that support the price increase.
The world's largest cryptocurrency, Bitcoin (BTC), has maintained a strong stance above the 100 thousand dollar level, refreshing investor confidence. Despite recent negative developments such as the Iran-Israel conflict and the U.S. airstrikes on Iran, the price's resilience has strengthened the positive perception in the market. Experts indicate that the likelihood of Bitcoin's price reaching 120 thousand dollars this year has increased.
There are four key factors contributing to the rise in Bitcoin price: spot market resistance, central banks' monetary policies, the decline in energy prices, and the positive trend of technical indicators. When these factors are evaluated together, they pave the way for a rapid and sustainable increase in BTC price.
Is the Fed Preparing for Interest Rate Cuts?
Statements from Federal Reserve (Fed) officials regarding interest rate cuts are bringing smiles to Bitcoin investors. Fed officials Michelle Bowman and Christopher Waller announced their support for a possible interest rate cut in July. Comments from individuals close to President Trump about interest rate cuts are leading to interpretations that Trump's influence over the Fed is increasing. This situation could accelerate investors' shift towards risky assets like Bitcoin and stocks.
Additionally, the unexpected drop in oil prices in the global energy market has reduced inflation concerns, strengthening the likelihood of interest rate cuts. From a technical perspective, the upward crossing of Bitcoin's significant moving averages is empowering the bulls.
Experts point out that even minor corrections in Bitcoin's price in the short term are perceived as buying opportunities by investors. According to Glassnode data, while short-term sellers have decreased, long-term buyers continue to make purchases at low prices. This indicates that Bitcoin has the potential for a strong upward trend.$BTC