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The current trajectory of Bitcoin (BTC) prices could push it to the $100,000 mark in the next 90 days, regardless of the results of the US presidential election.
Bitcoin At $100,000 By February 2025?
Crypto analyst Timothy Peterson suggests that BTC’s current price movements are not significantly different from previous trends, raising questions about the “diminishing returns” theory.
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From an investor’s point of view, Bitcoin’s diminishing returns theory of marginal returns means that each halving cycle leads to smaller gains for successive prices, as the total market for the digital asset grows and its supply shocks have a reduced impact on increasing demand.
This suggests that while BTC may continue to grow, the unusual returns seen in early cycles may decline over time. However, Peterson’s research seems to disprove this idea.
To recall, BTC made an all-time high (ATH) of $73,737 in March 2024. Since then, the leading cryptocurrency covers 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% lower than its ATH.
Peterson he argues that the movement of BTC just above the red line will put the digital asset at $100,000 within 90 days. The analyst added that such a move “would be completely within reason.” He added:
A sequential trend puts bitcoin at $100k in February. I think this happens regardless of the outcome of the US election.
In addition, the analyst suggested that according to some data-driven metrics that he monitors, BTC is not too expensive at its current market valuation, and the possibility of a drop below 60,000 dollars is becoming more and more possible.
Focus on BTC Year End Price Predictions
While Peterson envisions BTC approaching $100,000 within three months, other analysts and industry insiders have mixed expectations.
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For example, options market traders wait BTC will break through its previous ATH by the end of November, regardless of who will be the next US president.
Similarly, in a recent client memo, Bitwise CIO Matt Hougan explained several factors could force BTC to “melt” to $80,000 in Q4 2024.
These factors include the possible victory of Republican candidate Donald Trump, further interest rate cuts by the US Federal Reserve (Fed), and an extended period without major negative developments in the crypto sector.
Apart from the aforementioned factors, the prospect of BTC’s year-end rally is also fueled by the rising demand for sales of the premium digital asset.
The latest CryptoQuant analysis highlighted that Bitcoin trading below $10,000 is at a high level, indicating renewed demand to sell as the market slowly moves from risk to risk mode. BTC is trading at $67,998 on the daily chart at press time, up 1.1% in the last 24 hours.
Featured image from Unsplash, Charts from X and Tradingview.com
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