Bitcoin Could Surge to $120K on ‘Doomsday Rally,’ Trader Says

Some traders believe that global political developments and the quest for risk mitigation strategies in investing may cause an increase in Bitcoin’s value within the next few months, despite a recent 10% decrease, which shook investor confidence.

Bitcoin is often seen as a potential safeguard against political upheavals, having emerged during the aftermath of the 2008 financial crisis. Some investors argue that this protective role continues to hold value, even though bitcoin’s price movements have closely mirrored those of traditional assets for some time.

In an email to CoinDesk, Edouard Hindi, Tyr Capital’s chief investment officer, expressed that Bitcoin remains a promising option as a safety net asset in the year 2024. This belief is reinforced by its growing connection to Gold, and the trend of investors seeking alternatives to conventional financial assets.

“The ETF is leading the current market surge towards record-high prices. According to Hindi, we may reach $120,000 in the upcoming months as global tensions worsen and the middle class seeks methods to safeguard their riches.”

Over the weekend, cryptocurrency markets experienced significant volatility. The heightened geopolitical tension between Iran and Israel, as well as investors taking profits before the upcoming bitcoin reward reduction on April 20, contributed to this market instability. This technical event, known as the halving, will result in a 50% decrease in new bitcoins generated through mining rewards.

Over the weekend, major tokens experienced a significant drop, losing approximately 18% of their value compared to their peak prices from the previous week. However, some of these losses were regained on Monday. The downward trend continued in Asian trading hours on Tuesday, with Israel contemplating retaliation against Iran for launching over 300 drones and missiles towards its land.

In other parts of the market, Bitcoin ETF investments have decreased noticeably over the last week. Among these funds, only BlackRock’s IBIT reported new investments on Monday, whereas the other 10 ETFs experienced withdrawals.

According to some market analysts, Bitcoin’s price movements over the next few weeks could influence the direction of the larger crypto market.

“Alex Kuptsikevich, FxPro senior market analyst, noted in his daily report that the US stock market sell-off dampened global investor sentiment on Monday, erasing earlier optimism. The markets are now close to their March lows, marking a critical juncture for determining the market trend over the next few weeks. If the markets rebound from this level, it could pave the way for an early return to recent highs. However, a slide below these levels may lead to widespread selling of positions.”