Top 5 Factors That Could Drive Bitcoin (BTC) Price to Record Highs in Six Months

The post Top 5 Factors That Could Drive Bitcoin (BTC) Price to Record Highs in Six Months appeared first on Coinpedia Fintech News

In a bullish start this month, Bitcoin has gone up $50,000, breaking the whooping market cap of $1 trillion and marking a more than 30% increase in the past three weeks. Bitcoin’s surge has made the market curious about when Bitcoin will hit an all-time high. In the meanwhile, the $69K high set in 2021 is now just 32% away, and several bullish factors are joining in. Notably, five major factors could push Bitcoin to new all-time highs before summer: the Halving, ETFs, Easing, Elections, and Treasuries. 

Excited to know, let’s step in. 

Bitcoin to hit All-Time High of $69K, If? 

Analytics firm IntoTheBlock’s report suggests an 85% chance of Bitcoin hitting a fresh all-time high within the next six months. According to their head of research, Lucas Outumuro, this forecast is based on five key catalysts that could drive Bitcoin higher in the coming months.

He started with the highly anticipated Bitcoin halving in April event, expected to cut BTC miner rewards in half. He believes miners are well-prepared for this event, and Bitcoin’s all-time high may be reached just a month after the halving. Plus, it will reduce selling pressure post-halving as BTC’s issuance inflation rate drops significantly.

The second catalyst is fresh inflows from recently approved Bitcoin exchange-traded funds (ETFs), which have already attracted around $4 billion in new investments within a month of their launch. This massive influx can boost Bitcoin demand, particularly as supply issuance decreases post-halving.

The third factor will be the anticipation of interest rate cuts by the Federal Reserve, possibly starting as early as March. Traders are pricing in these rate cuts, which could lead to increased liquidity in financial markets, benefiting assets like Bitcoin and stocks.

The fourth factor is the upcoming US presidential election, with expectations that the Fed might take steps to support the economy ahead of the event, potentially influencing market dynamics.

Finally, Outumuro predicts that companies globally will accumulate Bitcoin in the coming months, accompanied by spot ETFs making Bitcoin more accessible. This trend of companies adopting Bitcoin for their treasuries, particularly in Asia and South America, is expected to expand nationally with the legitimacy brought by ETFs in the US.

Additionally, the prospect of institutional treasuries allocating to Bitcoin presents a bullish narrative, further fueling optimism for price appreciation.

While the outlook appears promising, several risks loom on the horizon. The possibility of catalysts being priced in, geopolitical conflicts, or unexpected selling pressure could dampen Bitcoin’s ascent. A failure of anticipated events, such as the Federal Reserve refraining from easing conditions, could trigger a significant market correction.