2024-10-7 11:00 |
Crypto analyst Ash Crypto has outlined several reasons why the Bitcoin price is poised to reach $100,000 by the end of the year. This price level is one that other market experts like Standard Chartered have predicted that the flagship crypto could hit even before year-end.
Why The Bitcoin Price Can Reach $100,000 By Year-EndAsh Crypto stated in an X post that the answer to whether Bitcoin will reach $100,000 in the fourth quarter of this year lies in the past halving cycles. He noted that BTC usually goes through a consolidation phase of around six months after each halving. In 2016, the flagship crypto is said to have witnessed 161 days of consolidation before a price breakout. Meanwhile, in 2020, Bitcoin recorded 175 days of consolidation before its price broke out.
In line with this, Ash Crypto noted that the flagship crypto has consolidated for 161 days since the Halving event in April earlier this year. Therefore, the analyst claimed that there is a high probability that the Bitcoin price could witness a breakout in the next two to three weeks. He then went on to outline fundamentals that could spark this price breakout.
Firstly, Ash Crypto stated that China is printing $280 billion to boost its economy. This is about the People Bank of China’s announcement of a stimulus package to help revive the country’s economy. China’s monetary easing policies have been bullish for Bitcoin, historically leading to price surges for the flagship crypto.
Furthermore, the analyst noted that the US Federal Reserve has started cutting interest rates. The Fed announced a 50 basis points (bps) rate cut at its September FOMC meeting. There are also expectations that there could be another 50 bps rate cut before the year ends. This is also bullish for the Bitcoin price since more liquidity could flow into the flagship crypto with US investors having access to more capital.
Another macro factor that the analyst cited is the fact that the Bank of Japan (BOJ) looks to have turned dovish and is, in the meantime, no longer considering rate hikes. The Bitcoin price crashed below $50,000 in the infamous August 5 crypto market following the BOJ’s decision to raise interest rates for the first time in 17 years.
Therefore, the BOJ’s decision not to hike rates further is positive for Bitcoin. Doing otherwise could revive the ghosts of the yen carry trade as Japanese investors liquidate their positions in risk assets like BTC.
Other Factors That Could Spark The Rise To $100,000Ash Crypto also listed other factors that could help the Bitcoin price reach $100,000. The analyst noted that Donald Trump is again leading in the opinion polls and looks likely to win the US presidential elections in November. A Trump victory is considered a win for Bitcoin and the broader crypto market because the former US President has declared his support for cryptocurrencies.
The analyst also cited the Spot Bitcoin ETFs, which have started to accumulate again. The Bitcoin flow to exchange has also reached a very low level, which indicates that investors are choosing to hold for the long term, meaning less selling pressure. FTX customers are also expected to receive their repayments this quarter, which could cause more liquidity to flow into Bitcoin.
Lastly, Russia plans to use cryptocurrencies like Bitcoin for cross-border payments starting in November, while the global money supply has reached new highs. Therefore, the Bitcoin price is currently bullish.
Interestingly, Ash Crypto claimed that the crypto market has still not factored in all these bullish fundamentals. He stated that Bitcoin will reach a new all-time high (ATH) when that happens.
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