Bitcoin is on track to possibly hit $100,000 soon. This follows a strong U.S. jobs report and improved market sentiment, driving up the S&P 500. Analyst Matt Mena from 21Shares notes a key breakout past $95,000 and a positive shift in monetary policy expectations could support further bullish movement. Increased liquidity also shows promise, suggesting BTC might reclaim its all-time high by the quarter’s end.
Bitcoin is eyeing the $100,000 mark soon, driven by a surge in momentum, liquidity, and a key breakout, as we enter a promising second quarter. According to Matt Mena, a strategist at 21Shares asset management, recent trends are aligning favourably for the cryptocurrency.
On Friday, Mena commented on April’s positive U.S. jobs report that added 177,000 jobs, extending a lengthy streak to 52 months, with the unemployment figure stable at 4.2%. This data has bolstered market sentiment, easing fears of a potential recession that had been looming recently. The S&P 500 followed suit with a rebound past 5,600 points, now trending towards 5,700.
In the realm of digital assets, Mena noted the renewed appetite for risk is lifting bitcoin as it cleared a crucial resistance level. This week’s move past $95,000, which many viewed as a stubborn barrier, came with strong trading volume that accelerated the bullish momentum for bitcoin.
Mena pointed out how bitcoin’s recent behaviour correlates with the macroeconomic environment: “With stocks rising and expectations around liquidity improving, bitcoin is mirroring a high-beta asset tied to investor risk appetite.” He also shared insights about shifting monetary policy narratives, noting recent changes in market expectations that lean toward potential rate cuts.
Currently, markets are pricing in a 65% chance for four to five interest rate cuts by year-end, a significant rise from 30% just a month ago. This shift could drive more investment into hard assets like bitcoin, which benefits from being a non-sovereign asset with a fixed supply.
As a final remark, Mena highlighted the increasing global M2 liquidity, which often precedes moves in bitcoin’s price by approximately 12 weeks; signs of this uptick are showing in recent charts.
Overall, Mena sees bitcoin’s technical indicators coupled with the supportive macro backdrop and resurgent equity markets as a strong prelude to potentially challenging the $100K mark in the next weeks. If investor enthusiasm persists and liquidity remains strong, there’s a real possibility bitcoin could reach its previous all-time high of $108,000 by the end of this quarter.
