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bitcoin-upsuge/” rel=”nofollow”>crypto Analyst Ash crypto has outlined several reasons why the price of bitcoin is poised to hit $100,000 by the end of the year. This price level is one that other market experts like. bitcoin-pre-us-elections/” rel=”nofollow”>Standard Chartered has predicted that the flagship cryptocurrency could reach even before the end of the year.
Why bitcoin Price May Hit $100,000 by Year's End
Ash crypto stated in a x.com/Ashcryptoreal/status/1842606269657657442″ rel=”nofollow”>x publication that the answer to whether bitcoin will reach $100,000 in the fourth quarter of this year lies in the past halving cycles. He noted that btc typically goes through a consolidation phase of about six months after each halving. In 2016, the flagship cryptocurrency is said to have witnessed 161 days of consolidation before a price breakout. Meanwhile, in 2020, bitcoin recorded 175 days of consolidation before its price skyrocketed.
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In line with this, Ash crypto noted that the flagship cryptocurrency has been consolidating for 161 days since the bitcoin-halving-investors-btc/” rel=”nofollow”>Halving Event in April earlier this year. Therefore, the analyst stated that there is a high probability that the bitcoin price will experience a breakout in the next two to three weeks. He then went on to describe the fundamentals that could cause this price breakout.
First of all, Ash crypto He claimed that China is printing $280 billion to boost its economy. This is the announcement by the People's Bank of China of a stimulus package to help reactivate the country's economy. China's monetary easing policies have been bullish for bitcoin, historically leading to price increases for the flagship cryptocurrency.
Furthermore, the analyst pointed out that the bitcoin-set-to-rally-as-analysts-back-25-bps-cut/” rel=”nofollow”>US Federal Reserve has begun to cut interest rates. The Federal Reserve announced a 50 basis point (bp) rate cut at its September FOMC meeting. There are also expectations that there could be another 50 basis point rate cut before the end of the year. This is also bullish for bitcoin price as more liquidity could flow into the flagship crypto and US investors would have access to more capital.
Another macro factor the analyst cited is the fact that the Bank of Japan (BOJ) appears to have become dovish and is no longer considering raising rates in the meantime. He bitcoin price fell below $50,000 in the infamous crypto market on August 5 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. Doing otherwise could revive 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 help bitcoin price reach $100,000. The analyst pointed out that crypto-advocacy-gets-a-powerful-voice/” rel=”nofollow”>donald trump He is once again leading opinion polls and appears likely to win the US presidential election in November. A Trump victory is considered a victory for bitcoin and the broader crypto market because the first crypto-companies/” rel=”nofollow”>The president of the United States has declared his support. for cryptocurrencies.
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The analyst also cited bitcoin Spot ETFs, which have started to accumulate again. The flow of bitcoin to the exchange has also reached a very low level, indicating that investors are choosing to hold their positions for the long term, which means less selling pressure. FTX Clients They are also expected to receive their refunds this quarter, which could cause more liquidity to flow into bitcoin.
Lastly, Russia plans to use cryptocurrencies like bitcoin for cross-border payments starting in November, while the global money supply has reached new highs. Therefore, the price of bitcoin is currently bullish.
Interestingly, Ash crypto stated that the cryptocurrency market has not yet factored in all of these bullish fundamentals. He claimed that bitcoin will reach a new bitcoin-breaks-through-69000-setting-new-record/” rel=”nofollow”>all-time high (ATH) when that happens.
Featured image created with Dall.E, chart from Tradingview.com
