Bitcoin Forecast: Potential Price Surge to $138K in Three Months

Bitcoin (BTC) may reach $138,000 within three months, according to Timothy Peterson’s analysis, which indicates a price floor of $75,000. This is based on historical correlations with the US High Yield Index Effective Yield, showing Bitcoin’s price increase 71% of the time in similar macroeconomic conditions. A shift in correlation with the US dollar is anticipated, with current conditions indicating a potential surge in Bitcoin’s value.

Bitcoin (BTC) is currently exhibiting an unusual correlation with the US dollar, with projections suggesting that its price may potentially reach $138,000 within a three-month period. Recently, network economist Timothy Peterson estimated a price floor at $75,000, indicating robust bullish sentiments in the market despite ongoing macroeconomic volatility caused by the US trade war.

Peterson’s analysis incorporates the US High Yield Index Effective Yield, which exceeds 8%, as a pivotal factor for Bitcoin’s trajectory. Historical data suggests that, since 2010, there have been 38 instances when this yield level was noted, and Bitcoin experienced price increases 71% of the time over three-month periods. The median gain during these instances was approximately 31%, indicating a strong tendency for Bitcoin to rise.

With Bitcoin’s potential to achieve a price fluctuation of 62% in the upcoming months, investors are encouraged by the possibility of revisiting January’s all-time high. As noted by Peterson, this upward price movement could place Bitcoin between $75,000 and $138,000 by the end of the three-month forecast.

Further analysis from Peterson indicates a shift in the historical correlation of Bitcoin with the US dollar index (DXY). As US trade tariffs contribute to declines in the DXY, he foresees a break in the traditionally inverse relationship between the two assets, predicting that Bitcoin’s rise is contingent on a decline in real yields and the re-establishment of liquidity in markets. Recent data shows the DXY remains below the key 100 mark, signalling significant shifts in market dynamics.

It is important to note that while these insights provide an interesting forecast for Bitcoin, they do not constitute investment advice. Investors should recognise the inherent risks involved in trading and conduct thorough personal research before making financial decisions.