Bitcoin’s bullish momentum continues, with analysts pointing towards significant factors that could propel the price to a staggering $100,000 by the end of the year. Let's dive into the reasons behind this optimistic outlook.
According to crypto analyst Ash Crypto, Bitcoin’s potential to hit $100,000 this year lies in its historical halving cycles. Typically, BTC consolidates for about six months post-halving before a major price breakout. Ash Crypto cited that after the 2016 halving, Bitcoin consolidated for 161 days, while in 2020, the consolidation lasted 175 days before the next significant price surge. Fast forward to 2024, Bitcoin has again been consolidating for 161 days since the April halving, indicating that a breakout could occur in the coming weeks.
Key Factors Behind Bitcoin's Potential Surge to $100,000
China's Economic Stimulus
China’s recent decision to inject $280 billion into its economy through a stimulus package has historically boosted Bitcoin prices. This monetary easing could once again drive more liquidity into the crypto market, fueling Bitcoin’s rise.
US Federal Reserve Rate Cuts
The US Federal Reserve has initiated interest rate cuts, with a recent 50 basis points (bps) reduction and the potential for another 50 bps cut before year-end. This policy shift is expected to provide more liquidity to US investors, further driving Bitcoin investments.
Japan's Dovish Monetary Policy
The Bank of Japan (BOJ) has also adopted a dovish stance by pausing rate hikes. This marks a reversal from the BOJ's first rate hike in 17 years, which caused Bitcoin’s price to plummet last year. Now, the absence of further rate hikes is expected to benefit Bitcoin.
Other Catalysts Pushing Bitcoin Higher
In addition to these macroeconomic factors, other bullish indicators include Donald Trump’s resurgence in US presidential polls, with his pro-crypto stance being favorable for Bitcoin. The resurgence of Spot Bitcoin ETFs accumulating Bitcoin and the ongoing reduction in Bitcoin exchange flows signals long-term investor confidence, reducing selling pressure. Furthermore, the upcoming repayment to FTX customers and Russia’s plan to utilize cryptocurrencies for cross-border payments in November are additional bullish indicators that could propel Bitcoin to new all-time highs.
With global money supply surging and these combined factors still not fully priced into the market, Ash Crypto predicts that Bitcoin will break through its previous ATH and hit the coveted $100,000 mark soon.
