Bitcoin’s price has surged past $87,700 amid a weakening dollar and speculation on U.S. Treasury buybacks. Analysts predict it may exceed $100,000 soon, citing strong institutional support and macroeconomic conditions. However, caution remains as some analysts anticipate potential dips before major breakthroughs. Political pressures may also impact Bitcoin’s trajectory.
Bitcoin has seen a notable price surge, briefly touching $87,700, largely attributed to a softening U.S. dollar and discussions about possible Treasury buybacks. Arthur Hayes, the co-founder of BitMEX, suggests this might be investors’ final opportunity to acquire Bitcoin for under $100,000. He perceives the Treasury’s potential buybacks as a game-changer, or “bazooka,” that could rocket Bitcoin’s value upwards beyond the $100k mark.
The backdrop of this price rise includes macroeconomic indicators, especially the dollar, which has plummeted to its lowest level since March of last year. As the greenback weakens, Bitcoin becomes increasingly appealing as a hedge for investors. This growing interest aligns with Bitcoin’s rising correlation with gold, which has appreciated by nearly 30% thus far this year. Ryan Lee, Chief Analyst at Bitget Research, notes a “descending wedge breakout” in Bitcoin’s technical charts supporting this positive outlook.
Institutional interest in Bitcoin remains robust, despite the market’s usual volatility. Investment groups from Japan and the U.K. maintain their investments, showcasing their trust in Bitcoin’s future. Analysts like Jamie Coutts from Real Vision predict Bitcoin could rise to $132,000 by the year’s end, spurred on by a growing money supply (M2). Echoing this sentiment, economist Timothy Peterson believes Bitcoin may touch $138,000 within three months, based on historical price movements.
Yet, the current political landscape adds a layer of unpredictability. With President Donald Trump hinting at removing Fed Chair Jerome Powell, there are rising expectations of interest rate cuts that could further hit the dollar, thereby aiding Bitcoin’s ascent. This combination of political pressure and broader economic trends might set a new stage for Bitcoin.
Nevertheless, some analysts urge caution. Michaël van de Poppe has highlighted that weekend rallies might not hold, and a temporary dip could be in the cards before breaking through key levels of resistance. Currently, the $91,000 mark is a pivotal point to watch, and until Bitcoin clears it, some price fluctuations could still happen.
In essence, the convergence of weakening fiat currencies, increasing institutional backing, and Treasury buybacks could create a sweet spot for Bitcoin’s pricing, possibly propelling it toward the long-awaited $100,000 milestone and beyond.
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