The potential rise of Bitcoin above $100,000 is influenced by US Treasury buybacks, which may enhance liquidity. Arthur Hayes warns this is a last chance to buy below this threshold. Analysts see a growing fiat money supply as a primary catalyst for Bitcoin’s future price increases. Despite trade tensions, institutional investment in Bitcoin continues, suggesting strong market support.
The potential for a Bitcoin rally exceeding $100,000 is a significant topic among investors, especially as US Treasury buybacks may catalyse this upward momentum. Arthur Hayes, co-founder of BitMEX and chief investment officer of Maelstrom, has cautioned that this may be the last opportunity to purchase Bitcoin (BTC) at a price below $100,000. Notably, he referenced the term “treasury buy backs,” indicating their impending influence on Bitcoin’s price trajectory.
Treasury buybacks occur when the US Treasury Department repurchases its outstanding bonds from the market. This financial operation aims to enhance liquidity, manage federal debt, or stabilise interest rates. Such actions can inject liquidity into the financial system, creating favourable conditions for risk assets like Bitcoin.
Other analysts note that Bitcoin’s growth may primarily be driven by an increase in the fiat money supply, which could propel its price above $132,000 by year-end, as suggested by Jamie Coutts, chief crypto analyst at Real Vision. However, existing global trade tensions might dampen investor enthusiasm until a trade agreement is reached between the US and China.
In recent weeks, Bitcoin’s price surged past $87,700 for the first time in nearly three weeks, following market reactions to US President Donald Trump’s announcement of reciprocal import tariffs. André Dragosch, head of research at Bitwise Europe, indicated that Bitcoin’s recent pump correlates with a declining US dollar, which has reached its lowest level since March 2022.
The diminishing strength of the US dollar may enhance Bitcoin’s status as a safe-haven asset, as Ryan Lee from Bitget Research observed. He highlighted that strong trading volumes and technical indicators suggest a possible test of the $90,000 resistance, further reinforced by macroeconomic trends.
Despite recent market corrections, significant investments from Japanese and UK-based firms into Bitcoin reflect a sustained trend of institutional adoption. This trend could contribute to the acceleration of Bitcoin’s four-year market cycle. It is critical to note that this article does not provide investment advice, and all potential investors should conduct thorough research before making any financial decisions.
