- After starting the summer with a decline, Bitcoin seems to be making a comeback.
- Some analysts predict that a new rally is about to begin.
- David Brickell of FRNT Financial and former forex trader Chris Mill suggest that “the groundwork for Bitcoin’s next bullish phase appears to be set” in their latest “Connecting the Dots” newsletter.
Discover the four critical factors that could drive the next bullish phase of Bitcoin, supported by insights from industry experts.
Potential Political Climate Shift
Genesis Global Trading’s former head of market insights, Noelle Acheson, highlighted in her “Crypto is Macro Now” newsletter how an increasingly likely Trump presidency could boost Bitcoin’s price. Following an assassination attempt on Sunday, the possibility of a second Trump term has soared, according to crypto prediction site Polymarket. Previously known for calling Bitcoin a “scam against the dollar,” Trump has repositioned himself as a crypto-friendly candidate. Industry players speculate that Trump could replace the current SEC Chairman Gary Gensler, an outspoken crypto critic, with a more crypto-supportive leader.
Attitudinal Shifts in Washington
Bitwise’s Chief Investment Officer Matt Hougan recently remarked in a note to investors that “crypto has faced outright hostility from Washington in recent years, hindering the sector’s growth.” However, he pointed out, “one of the most striking developments in recent months has been a sharp shift in attitudes.” Hougan notes that both Democrats and Republicans have recently voted for crypto-friendly legislations, calling it a “game-changing” shift. According to Hougan, this evolving regulatory landscape could potentially propel Bitcoin to $100,000 by the end of 2025.
Impact of Interest Rate Cuts
Confidence that reached an all-time high has surged further with signals from the U.S. central bank indicating potential interest rate cuts. FED Chairman Jerome Powell commented on Monday that the latest inflation data for the second quarter supports the central bank’s objectives. This increases the likelihood of a rate cut in September, signaling a potential upswing for riskier assets like stocks and cryptocurrencies. Brickell and Mill opine, “Now is the prime time.”
Artificial Intelligence and Bitcoin Mining
According to Bernstein analysts, artificial intelligence could push Bitcoin to $200,000 by the end of 2025. In a research note released last week, they argued that Bitcoin miners, who are meeting the increasing data demands of AI, would help stabilize Bitcoin prices. Bernstein suggests that rather than liquidating their Bitcoin assets, miners could benefit from a new revenue stream by leveraging their capabilities in AI-driven data processing.
Conclusion
In summary, the next bullish phase for Bitcoin could be driven by four significant factors: a potential political shift with a Trump presidency, favorable attitudinal changes in Washington, anticipated interest rate cuts, and the burgeoning role of artificial intelligence in Bitcoin mining. These developments present a promising future for Bitcoin, with some experts projecting prices as high as $200,000 by 2025. Readers should keep a close eye on these evolving elements to understand the potential trajectory of Bitcoin.
