Analysts forecast Bitcoin’s price could reach a new high within 100 days, driven by a falling VIX and stablecoin market growth. Timothy Peterson ties Bitcoin’s potential to market volatility, predicting a rise to $135,000 if the VIX stays low. However, emerging trends in Bitcoin futures indicate a potential for short squeezes, amidst a backdrop of significant liquidity in stablecoins.
Wall Street Expresses Optimism on Bitcoin’s Future
Analysts are buzzing about Bitcoin’s potential to hit a new all-time high in just 100 days. Timothy Peterson, a Bitcoin network economist, shared this bold prediction based on recent macroeconomic indicators. Twitter, or X as it’s now called, saw Peterson tying Bitcoin’s price actions to the CBOE Volatility Index (VIX), a tool used to gauge market volatility over 30 days.
Recently, the VIX has seen a notable decline, dropping from 55 to 25 in a mere span of 50 trading days. A VIX below 18 typically suggests a more favourable “risk-on” environment, which tends to boost investments in riskier assets like Bitcoin. Peterson is predicting a potential Bitcoin price of $135,000 if the VIX stays low, a forecast that’s garnered attention due to its impressive 95% tracking accuracy. This shows how much Bitcoin sways with market sentiment; indeed, lower VIX readings reduce uncertainty – a sweet spot for investments.
In a related discussion, Jurrien Timmer, Fidelity’s head of global macro, likened Bitcoin’s volatility to that of both Dr. Jekyll and Mr. Hyde. He argued that Bitcoin, unlike gold, offers both a store of value and speculative potential. Timmer elaborated that Bitcoin’s performance typically thrives when the money supply, known as M2, rises alongside a bullish stock market. However, it doesn’t shine as brightly when markets face a downturn, underscoring its unpredictable nature, particularly when compared to the stable characteristics of gold.
Meanwhile, on the ground, the stablecoin market seems to be surging, recently achieving a record cap of $220 billion, suggesting an influx of liquidity into the crypto space. As Bitcoin shifts away from bearish market conditions, this stability in stablecoin could signal a forthcoming high for Bitcoin.
However, things are a little murky at present; lower-time frame charts reveal complexities in trading dynamics. The funding rate in Bitcoin futures recently turned negative, which indicates a growing number of traders jumping on short positions to bet against Bitcoin’s rally. In fact, the 4-hour funding rate hit its lowest level yet in 2025, creating a scenario where short-side liquidity vastly outmatches long-side liquidity.
Such an imbalance could lay the groundwork for a short squeeze, potentially catapulting BTC towards the enticing $100,000 mark. It’s been reported that over $3 billion is now at risk for liquidation for those holding short positions, raising the stakes for a big upward movement that could catch many traders off guard.
Lastly, just a reminder for all readers: this article is not intended as investment advice. Every trading decision carries inherent risks, so be sure to do your homework before making financial commitments.
