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The current price trajectory of bitcoin (btc) could take it to the $100,000 mark in the next 90 days, regardless of the results of the US presidential election.
bitcoin at $100,000 in February 2025?
crypto analyst Timothy Peterson suggests that btc's current price movement is not substantially different from previous trends, raising doubts about the “diminishing marginal returns” theory.
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From an investor's perspective, bitcoin's theory of diminishing marginal returns implies that each halving cycle leads to successive smaller price gains, as the digital asset's total market capitalization matures and its supply have little impact on the increase in demand.
This suggests that while btc may continue to grow, the extraordinary returns seen in the early cycles could diminish over time. However, Peterson's evaluation seems to rule out this theory.
To recall, btc reached its all-time high (ATH) of $73,737 in March 2024. Since then, the leading cryptocurrency has been consolidating for almost eight months in a wide price range, reaching as low as $54,000. At the time of writing, btc is trading at $67,998, about 10% off its ATH.
Peterson x.com/nsquaredvalue/status/1849516907537317943″ target=”_blank” rel=”nofollow”>argues that btc moving just above the red trend line would put the digital asset at $100,000 within 90 days. The analyst added that such a measure will be “completely within reason.” He added:
A conservative scenario places bitcoin at $100,000 around February. I think this happens regardless of the outcome of the US elections.
Furthermore, the analyst suggested that based on other data-driven metrics he is monitoring, btc is not overvalued at its current market valuation, and the likelihood of a drop below $60,000 is increasingly unlikely.
Focus on btc year-end price predictions
While Peterson predicts btc will approach $100,000 within three months, other analysts and industry experts have different expectations.
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For example, options market traders wait btc will surpass its previous ATH by the end of November, no matter who becomes the next US president.
Similarly, in a recent memo to a client, Bitwise CIO Matt Hougan outlined There are several factors that could force btc to “melt” to $80,000 in Q4 2024.
These factors include the potential victory of Republican candidate Donald Trump, additional interest rate cuts by the US Federal Reserve (Fed), and an extended period free of major negative developments in the cryptocurrency sector.
In addition to the aforementioned factors, optimism towards a year-end btc rally is also fueled by rising retail demand for the leading digital asset.
Recent CryptoQuant Analysis highlighted that bitcoin transactions worth less than $10,000 are in an uptrend, indicating renewed retail demand as the market gradually shifts from risk-averse to risk-averse mode. btc is trading at $67,998 on the daily chart at the time of this publication, up 1.1% in the last 24 hours.
Featured image from Unsplash, x Charts and Tradingview.com
