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Crypto analyst Ash Crypto explained several reasons why Bitcoin price is poised to reach $100,000 by the end of the year. This price range is one that is favored by some market experts Standard Chartered predicted that the flagship crypto can hit even before the end of the year.
Why Bitcoin Price Could Reach $100,000 By The End Of The Year
Ash Crypto refers to an X post that the answer that Bitcoin will reach $ 100,000 in the fourth quarter of this year lies half cycles ago. He noted that BTC usually goes through a consolidation phase about six months after each split. In 2016, the main crypto is said to have seen 161 days of consolidation before the price exit. At that time, in 2020, Bitcoin recorded 175 days of consolidation before its price broke.
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In line with this, Ash Crypto noted that the flagship crypto has rallied for 161 days since It’s half the event in April earlier this year. Therefore, the analyst said that there are many possibilities that the price of Bitcoin can witness an explosion in the next two to three weeks. He then went on to lay out the key factors that could cause this price spike.
First, Ash Crypto said that China is spending 280 billion dollars to develop its economy. This is about the People’s Bank of China’s announcement of a stimulus program to help revive the country’s economy. China’s monetary easing policies have been effective for Bitcoin, historically leading to a rise in the price of the leading crypto.
In addition, the analyst noted that The US Federal Reserve has begun to reduce interest rates. The Fed announced a 50 basis point (bps) rate cut at its September FOMC meeting. A 50 bps rate cut is also expected before the end of the year. This is also bullish for the price of Bitcoin as more money may flow into the top crypto and US investors are able to get more money.
Another big thing that the analyst said is that the Bank of Japan (BOJ) seems to have become the norm and, at the moment, is not considering a rate hike. I The price of Bitcoin has dropped below $50,000 in the August 5 infamous 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 in favor of Bitcoin. Doing otherwise could revive the specter of yen carry trades as Japanese investors liquidate their risk positions like BTC.
Some Things That Can Trigger Up to $100,000
Ash Crypto also listed some factors that could help the Bitcoin price reach $100,000. The analyst noticed that Donald Trump he has once again taken the lead in opinion polls and looks likely to win the US presidential election in November. Trump’s victory is considered a win for Bitcoin and the broader crypto market because it is the former The American president has announced his support with cryptocurrencies.
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The analyst also cited Spot Bitcoin ETFs, which have started to rally again. The flow of Bitcoin in the exchange has also reached an all-time low, indicating that investors prefer to hold for the long term, which means less selling pressure. FTX customers they are expected to receive their payments this quarter, which could result in more money flowing into Bitcoin.
Finally, Russia plans to use cryptocurrencies such as Bitcoin for cross-border payments from November, while the global currency reached new heights. Therefore, the price of Bitcoin is currently bullish.
Interestingly, Ash Crypto said that the crypto market has not covered all of these fundamentals. He said that Bitcoin will reach a new one all time high (ATH) if that happens.
The featured image was created with Dall.E, a chart from Tradingview.com