Jamie Coutts, chief crypto analyst at Real Vision, predicts Bitcoin could surge to $186,000 fueled by increasing global liquidity, which is nearing $140 trillion. A projected rise in liquidity, he says, could lead to Bitcoin appreciating nearly 98%. With Bitcoin’s volatility decreasing compared to more volatile traditional assets, this trend could reshape investment strategies and portfolio allocations in the months to come.
In what could be a significant shift for Bitcoin (BTC), Real Vision’s chief crypto analyst Jamie Coutts is predicting the cryptocurrency may hit an astounding $186,000. The driving factor? A surge in global liquidity that has recently peaked at nearly $140 trillion, following a prolonged contraction. Coutts highlights how this increase in liquidity has historically sparked explosive asset rallies.
He further estimates that global liquidity could grow by 10%, adding around $13 trillion over the next year which is strongly correlated to a price boost for Bitcoin. “With central banks clearly behind the curve, it’s very plausible we see Bitcoin approach the $186,000 mark,” Coutts explains, while currently, Bitcoin is trading at about $93,772.
Coutts also notes an interesting trend in Bitcoin’s volatility. While BTC is becoming less volatile, traditional asset classes are seeing increased fluctuations. He remarks, “Volatility isn’t necessarily bad, especially if investors are rewarded with higher returns.” This observation has crucial implications for how portfolios might be constructed in the future.
A closer look at recent performance metrics reveals Bitcoin’s volatility-normalized return stands at -7.12 over the past four months, in stark contrast to the S&P 500’s -45.08. Over a longer timeframe since 2022, Bitcoin has achieved a return of 131.89, while the S&P 500 has posted -37.37. This suggests a better risk-adjusted return for Bitcoin compared to traditional equities.
As interest in cryptocurrencies continues to rise, particularly in light of this latest analysis, it remains essential for investors to exercise caution. Opinions shared here don’t serve as direct investment advice, and the message is clear: do your own research when considering high-risk assets like Bitcoin and the broader crypto market. Be mindful that any trades made come with inherent risks and potential financial loss.
