Could Bitcoin price climb to $100,000 by the end of the year? According to some analysts, yes. Here are the details.

Despite Bitcoin’s recent drop below $60,000, market analysts are optimistic about the potential for the BTC price to rise to $100,000 by the end of the year.

While this may seem ambitious, several macroeconomic factors could drive this upward momentum, making such a prediction less distant than it seems.

Noelle Acheson, a well-known crypto analyst, points out that Bitcoin saw a remarkable 270% increase from August to December 2020 following its previous halving. In her recent “Crypto is Macro” newsletter, she said that Bitcoin would only need to increase by 70% to reach $100,000, a much more modest climb compared to its past performance.

David Brickell of FRNT Financial and former forex trader Chris Mill echoed this sentiment in their “Connecting the Dots” newsletter, stating that current macroeconomic trends are aligning in Bitcoin’s favor. While the market awaits a catalyst, they emphasize that the overall environment is ripe for Bitcoin to continue its upward trajectory.

Another important factor affecting Bitcoin’s potential rally is the Fed’s monetary policy. Fed Chair Jerome Powell hinted at the possibility of lowering interest rates during his speech at the Jackson Hole Economics Symposium on August 23. Lower interest rates are generally beneficial for risky assets like cryptocurrencies, as they create a more supportive economic environment. Matt Hougan, Bitwise’s Chief Investment Officer, suggests that such rate cuts could “inject some life” into the market, further fueling Bitcoin’s rally.

The upcoming US presidential election is another factor that could affect Bitcoin’s price.