- Analysts predict Bitcoin’s price will reach the $100,000 mark, sharing details of their optimistic outlook.
- According to some financial analysts, Bitcoin, the world’s largest cryptocurrency, is preparing to start its next rise and potentially reach $100,000. This optimistic view is based on improving macro conditions and easing liquidity conditions for risky assets.
- David Brickell, the international distribution head of corporate capital markets firm FRNT Financial, and Chris Mill, a former forex trader at the Bank of England, shared their views in their joint crypto newsletters “Connecting the Dots”. They believe that the market has recently been overly pessimistic and will move upwards again.
Analysts predict Bitcoin’s price will reach $100,000 due to improving macro conditions and easing liquidity conditions for risky assets.
Factors Influencing Bitcoin’s Potential Rise
Brickell and Mill pointed to three reasons why liquidity conditions are likely to improve in the near future:
FED’s Dovish Stance
The FED displayed a relatively dovish stance at last week’s Federal Open Market Committee meeting, easing concerns that the US central bank may soon raise interest rates again. Higher interest rates would make borrowing more expensive and negatively affect risky investments like Bitcoin while strengthening the US dollar.
Reduction of Quantitative Tightening Program
The FED also announced that it would reduce its quantitative tightening program earlier than expected. This means it will invest an additional $35 billion into the bond market from June.
Weak Job Data
Lastly, according to analysts, the weak employment figures announced on Friday are likely to force the FED to lower interest rates soon. The report stated, “Especially before the election, the FED will respond quickly to signs of weakness in the labor market.”
Conclusion
In conclusion, analysts expect the combination of these factors to create a boundary on yields and the dollar, reversing the situation that has become a strong barrier for both Bitcoin and the broader risk market. As a result, they believe the stage is set for a potential rise of Bitcoin to $100,000.
