Bitcoin About To Reach 6 Figures: Analysts Are Getting Fired Up

Bitcoin keeps surprising us. While some were starting to get used to its rollercoaster rides, the flagship cryptocurrency has reached a new milestone by hitting a historic high of $93,500. Analysts, for their part, are in a frenzy and already predict a six-figure Bitcoin in the near future. But what is really happening behind this price surge?

A favorable economic context for Bitcoin

The recent rise of Bitcoin coincides with the release of the latest inflation data in the United States. Despite a 2.6% increase in the Consumer Price Index (CPI) in October, in line with expectations, Bitcoin held strong.

Even better, it took advantage of this announcement to consolidate its position above $90,000. Markets seem to be betting on a new interest rate cut by the Federal Reserve in December, with a probability of over 80% according to the FedWatch Tool from CME Group.

Quinn Thompson, founder of the hedge fund Lekker Capital, does not mince words: “See you at $100,000 next week!”.

On his part, Michaël van de Poppe, a recognized trader and analyst, shares this optimism and emphasizes that other economic data, such as the Producer Price Index (PPI), could further strengthen this bullish trend.

But that’s not all. Ryan Lee, Chief Analyst at Bitget Research, provides an enlightening analysis:

Bitcoin recently surpassed $93,000, mainly thanks to a continuous net influx of $4 billion from traditional funds represented by Bitcoin ETFs over the last five trading days.

To new heights: a question of time?

Market experts agree that the $95,000 level is a key supply zone, according to the analysis of order books. Yet, enthusiasm shows no signs of waning.

Onchained, a contributor to the on-chain analytics platform CryptoQuant, believes that Bitcoin could “potentially move from its current level of $93,000 to a peak between $180,000 and $200,000.” Just that!

Ryan Lee adds a layer of optimism by discussing the political outlook:

The elected president Trump hinted during the Bitcoin conference in Nashville that he might consider making Bitcoin a national reserve asset if he takes office, elevating BTC to the status of gold.

Such a decision could trigger similar movements in other countries, resulting in net inflows of hundreds of billions of dollars and propelling Bitcoin to new heights.

However, caution is the mother of safety. There are many indicators to watch. If the funding rate for long positions exceeds a certain threshold, it could signal a potential adjustment. Similarly, a successful break of the $94,000 threshold could lead to the liquidation of over a billion dollars in short positions, thus accelerating the market’s rise.

Bitcoin is on an impressive run, and analysts are not hiding their enthusiasm. Six figures seem within reach, but as always with cryptocurrency, it’s best to keep a vigilant eye. After all, as the saying goes, “to foresee is already to control a bit.” And who knows, maybe next week, we will all toast to Bitcoin at $100,000!