Bitcoin recently reached a new summit of $ 124,000 and increased by almost 30% for the year.
The institutional adoption of Bitcoin remains strong, money with FNB Bitcoin Spot.
Although many factors have a tendency in favor of Bitcoin at the moment, the global macroeconomic perspectives could put a brake on its ascending ascension.
August 14, Bitcoin(Crypto: BTC) has reached a new level of all time above $ 124,000. The most popular cryptocurrency in the world is now up by almost 30% for the year and seems to be evident for new gains, depending on the improvement of the feeling of the market for crypto.
But can Bitcoin Put even more, $ 150,000? To answer this question, it is important to consider what propels it.
There are several different catalysts pushing Bitcoin higher at the moment. One of them, of course, is the recent decree of the White House which will open the door to crypto To include in plans 401 (K). This should unlock billions of dollars in new capital, a large part of which will probably take place in Bitcoin.
Another key factor is institutional adoption. In other words, everyone seems to buy bitcoin these days. Companies buy Bitcoin. Bitcoin cash companies buy bitcoin. And the American government continues to suggest that it will find a “neutral” means of buying bitcoin.
Image source: Getty Images.
At the same time, the money continues to flow into the Bitcoin Spot ETF. This is undoubtedly the best way to follow the institutional demand. If the entries in the Bitcoin FNB are positive, this means that Bitcoin is likely to slip even more. If the drying entries, the bitcoin could make a rocky ride.
Finally, there is the global macroeconomic situation. The wider market seems to appropriate with the prices and what they will probably mean for the American economy. For the moment, inflationary pressures do not seem as threatening as in April, and investors are now expecting a series of interest rate drops from September. Historically, the lower rates have been favorable to crypto and led more money to switch to risky and volatile assets such as Bitcoin.
So everything is trendy in favor of Bitcoin. A combination of institutional adoption, improvement in market feeling and expectations of rate drops is to skip the market and push bitcoin above.
That said, Bitcoin is hardly a lock to reach $ 150,000 this year. One way of having an idea of what the global market thinks is to watch data from the prediction markets. There, people exchange contracts depending on where they think that the price of bitcoin then goes.
On the Kalshi prediction market, for example, traders believe that Bitcoin has 75% chance of reaching $ 130,000 this year, 53% chance of reaching $ 140,000 and 37% likely to reach $ 150,000. So, basically, there is a chance of 1 in 3 that Bitcoin reaches $ 150,000 by the end of the year.
Things become a little more dique from there. For example, there are only 27% chance that Bitcoin reaches $ 160,000 and 10% chance that Bitcoin reaches $ 200,000. This last data point is particularly remarkable because, at the beginning of the year, almost everyone predicted that Bitcoin would double in value and easily reach $ 200,000.
The market is pricing in a drop in interest rates, but that cannot happen if its ugly inflation. And that’s exactly what happened almost as soon as Bitcoin reached $ 124,000. New economic data has suggested that inflationary pressures were being built. As a result, Bitcoin quickly fell to $ 120,000.
In this spirit, Bitcoin investors should keep an attentive eye on all the economic data that the federal reserve could take into account when adjusting interest rates in September. In particular, this marks a start of the way people have invested in Bitcoin in the past. Historically, the money took place in Bitcoin, no matter what people think that the Fed could (or not) do.
Barely a few years ago, Bitcoin was not completely not correlated with a major asset class. And that meant that Bitcoin could zig when other assets were zagge. But we are starting to see a correlation with actions, and in particular technological actions. Institutional investors queuing for a piece of bitcoin, the most popular cryptocurrency in the world is starting to behave more and more as a risky and up to par.
In the long term, I am always optimistic about Bitcoin. But as we saw in April, when Bitcoin completed under the threat of prices, there remains a very volatile digital active person subject to the wider macroeconomic prospects. There is a fairly good luck Bitcoin will reach $ 150,000, but only if the wider economy does not deteriorate.
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