As the ongoing bull market may be nearing its end, several crypto analysts remain hopeful that the primary cryptocurrency could reach unprecedented levels by the close of this year.
As a researcher delving into the fascinating world of cryptocurrencies, I recently uncovered some intriguing insights from Blockchain analytics platform CryptoQuant. Their latest findings suggest that Bitcoin (BTC) could potentially reach an astounding peak, ranging anywhere from $145,000 to $249,000! While emphasizing the crucial role of institutional adoption in driving this surge, their research highlights three key factors that will contribute significantly to the upcoming rally.
3 Factors to Propel Bitcoin’s Surge
Over the course of the last year, there’s been a substantial rise in Bitcoin holdings among wallet addresses containing between 100 and 1,000 Bitcoins. This increase ballooned from a value of $100 billion to an astounding $227 billion. The growth can be attributed to the approval of Bitcoin ETFs by U.S. authorities and widespread adoption of BTC by numerous institutions. This increased demand propelled Bitcoin’s price to soar, reaching a record high of $108,100.
Based on the expectation that this year’s market performance will outshine last year’s, CryptoQuant has pointed out three key elements likely to drive the asset’s increase. One significant factor is the inauguration of Donald Trump. His pledge to transform America into a cryptocurrency hub by enacting policies supportive of digital assets and appointing regulators sympathetic to the industry could potentially boost Bitcoin’s price growth.
One reason Bitcoin’s price might increase could be due to anticipated reductions in the Federal Reserve interest rates. According to studies by CryptoQuant, such a move “may create conditions that encourage investment in riskier assets such as Bitcoin.
In summary, CryptoQuant predicts that due to 2021 being the last year of the current four-year bullish trend for Bitcoin, we can expect significant price increases. Typically, Bitcoin experiences a substantial surge in value during the final year of the cycle. Consequently, they anticipate approximately $520 billion in new investments flowing into the Bitcoin market this year.
BTC Trades Around $97K
It’s yet to be determined how much higher Bitcoin’s value might climb. Currently, the leading cryptocurrency is being traded above $102,000, having surpassed the six-digit mark following the recent CPI data release. This rise was unexpected, as the asset had dropped below $90,000 only two days earlier.
Despite the fact that Bitcoin’s current price is 5.5% lower than its all-time high of $108,100, I find myself optimistic. Many analysts, such as CryptoQuant, predict a bullish surge in Bitcoin’s price, which could potentially drive it back up to new heights.
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2025-01-18 15:58