Peter Brandt, technical analyst, now think bitcoin is on its way to $200,000, citing a recent break above $57,000. The strong shift towards spot rates is due to growing institutional adoption.
bitcoin explodes, heading towards $200,000?
The analyst, posted on X, noted that btc prices are now trading above the 15-month channel resistance. Earlier today, bitcoin broke above the upper trend line of the ascending channel.
Consequently, Brandt now believes that this breakout, especially considering what has been happening with bitcoin's absorption rate among institutions, would drive the currency higher.
With this background, the analyst revised bitcoin's target from $120,000 to $250,000. Brandt added that this upward trend will end in August/September 2025.
Overall, traders are bullish on the currency and expect higher prices to float. At spot exchange rates, btc, after breaking out of the 15-month ascending channel, is trading at 2024 highs. Traders are expecting further gains towards 2021 highs around $70,000, citing institutional adoption.
Since mid-January, billions have flowed into institutions following the approval of spot bitcoin exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC). It is noteworthy that the number of coins purchased has, in some cases, exceeded those extracted. Consequently, this actively creates an imbalance, a demand-side event that would further support prices.
btc Spot ETFs Ushered in a New Era of Price Discovery
It is this fact that Matt Hougan, chief investment officer (CIO) at Bitwise Asset Management, points out in a letter to investors that will drive prices even further. in the note shared According to CEO Hunter Horsley, Hougan argued that bitcoin has now entered a “new era of price discovery,” driven primarily by large monetary institutions in the United States.
Specifically, the CIO attributes this increase in demand to the discovery of bitcoin ETFs. It is a derivative product that has allowed a wide range of investors to easily access the currency. Hougan compares the recent sequence of events to “100 very rich people bidding on a house.” This is a drastic change compared to the previous limited group of mostly retail investors before the US SEC gave the green light to the product.
Because of what he is going through, Hougan expects more profits. In the CIO's preview, if family offices and institutions allocated even 1% of their assets under management, the amount would translate to more than $1 trillion. This figure almost equals bitcoin's current market capitalization and would profoundly affect prices.
Featured image from Canva, TradingView chart
