Traders are optimistic that Bitcoin could nearly double from its current price of $98,000 to reach $180,000 if the Federal Reserve proceeds with cutting US interest rates next year and there is a significant rise in demand from institutional investors.
On November 21, Bitcoin reached a new all-time high of $98,000, fueled by optimism surrounding Donald Trump’s favorable stance on cryptocurrency, which is seen as paving the way for a surge in the industry as the US shifts toward more supportive regulations rather than a crackdown.
Trump’s transition team is reportedly discussing the potential establishment of a White House position focused on digital asset policy.
Peerapat Hankongkaew, chief investment officer at Cryptomind Advisory, stated that it wouldn’t be surprising to see Bitcoin hit $100,000 soon, especially if confidence in the market is bolstered by lower interest rates.
Cryptomind, a digital asset advisory firm based in Bangkok, has predicted since early 2024 that a decline in interest rates will lead to increased liquidity in the market, driving capital into riskier assets.
They highlighted that several positive developments tend to influence Bitcoin’s price multiple times each year. For instance, Bitcoin experienced a significant rally in January after news broke that institutional investors could purchase spot Bitcoin exchange-traded funds. A notable decline in the dollar’s value also occurred in May.
The latest price surge is attributed to Trump’s win in the US presidential election, as he has generally been supportive of Bitcoin, according to analysts.
Currently, the market appears stable, though profit-taking may occur in the short term as investors often sell to realize gains, said Mr. Peerapat. He advised against purchasing more Bitcoin at this stage, suggesting that current holders should wait for supportive factors like interest rate reductions and further dollar weakening.
Recently, the Federal Reserve indicated a delay in cutting interest rates, prompting capital to shift back to the bond market and US stock market, which has led to a capital outflow from emerging markets, according to Mr. Peerapat.
Looking ahead to Bitcoin’s price trajectory in 2025, if it surpasses $100,000, Cryptomind identifies the next resistance level at $115,000, followed by a potential correction from profit-taking before it could rise to $180,000, assuming additional positive factors such as continued interest rate cuts come into play.
If Trump successfully implements pro-crypto policies, demand for Bitcoin and stablecoins like USDT and USDC, which are commonly traded pairs, could surge, ushering in a bull market, according to Cryptomind.
Nonetheless, investors are advised to stay informed about Bitcoin and utilize that information to make investment decisions, given the high volatility and risks associated with cryptocurrency, stated Mr. Peerapat.
