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Crypto analyst Ash Crypto has outlined several reasons why the Bitcoin price will reach $100,000 by the end of the year. This price point is one that other market experts like Standard Chartered predicted it that flagship crypto could even strike before the end of the year.
Why Bitcoin Price Could Reach $100,000 by the End of the Year
Ash Crypto stated in a X message that the answer to the question of whether Bitcoin will reach $100,000 in the fourth quarter of this year lies in the question of whether Bitcoin will reach $100,000 in the fourth quarter of this year beyond halving cycles. He noted that after each halving, BTC usually goes through a consolidation phase lasting about six months. In 2016, the flagship crypto is said to have witnessed 161 days of consolidation before a price breakout. Meanwhile, Bitcoin recorded 175 days of consolidation in 2020 before the price broke out.
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In line with this, Ash Crypto noted that the flagship crypto has consolidated since 161 days Halving event in April earlier this year. Therefore, the analyst claimed that there is a good chance that Bitcoin price could see a breakout in the next two to three weeks. He then outlined the fundamental factors that could lead to this price breakout.
Firstly, Ash Crypto stated that China is printing $280 billion to stimulate its economy. This is about the People Bank of China’s announcement of a stimulus package to revive the country’s economy. China’s monetary easing policy has been bullish for Bitcoin, which has historically led to price increases for the flagship crypto.
Furthermore, the analyst noted that the US Federal Reserve has started lowering interest rates. The Fed announced a 50 basis point rate cut at the September FOMC meeting. It is also expected that another 50 basis points interest rate cut could occur before the end of the year. This is also bullish for the Bitcoin price, as more liquidity could flow into the flagship crypto while US investors have access to more capital.
Another macro factor cited by the analyst is the fact that the Bank of Japan (BOJ) appears to have become dovish and is no longer considering rate hikes. The The Bitcoin price crashed below $50,000 on 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 raise rates further is positive for Bitcoin. To do otherwise could resurrect the ghosts of the yen carry trade as Japanese investors liquidate their positions in risky assets like BTC.
Other factors that could cause the increase to $100,000
Ash Crypto also listed other factors that could cause the Bitcoin price to reach $100,000. The analyst noticed this Donald Trump is again at the top of the opinion polls and seems likely to win the US presidential elections in November. A Trump victory is seen as a victory for Bitcoin and the broader crypto market The American president has expressed his support for cryptocurrencies.
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The analyst also cited the Spot Bitcoin ETFs, which are starting to pile up again. Bitcoin flow to exchange has also reached very low levels, indicating that investors are choosing to hold for the long term, meaning there is less selling pressure. FTX customers are also expected to receive their refunds this quarter, which could lead to more liquidity flowing into Bitcoin.
Finally, Russia plans to use cryptocurrencies such as Bitcoin for cross-border payments starting in November global money supply has reached new heights. Therefore, Bitcoin price is currently bullish.
Interestingly, Ash Crypto claimed that the crypto market has still not taken into account all these bullish fundamentals. He stated that Bitcoin will reach a new one all-time high (ATH) when that happens.
Featured image created with Dall.E, chart from Tradingview.com