Countdown to new records: Bitcoin's potential to surpass previous peaks within the upcoming days
In the rapidly evolving world of cryptocurrency, Bitcoin continues to hold a dominant position, with its price showing significant upward momentum leading up to and following the US election.
The scarcity of Bitcoin's supply, bolstered by Bitcoin ETFs this year, remains a major price driver due to persistent, albeit decreasing, inflation. This, coupled with optimism linked to President Trump's positive stance on cryptocurrency, has fueled a bullish prediction for Bitcoin's price. According to market analysts, Bitcoin could range between $118K and $125K leading up to the US election, with strong momentum to potentially surpass $150K [1][2].
Key factors supporting this upward momentum include Bitcoin recently hitting record highs around $124K–$125K, driven by softer US inflation data and expectations of an interest rate cut, which have increased investor appetite [2]. Institutional interest is growing, exemplified by Trump's executive order that would allow 401(k) accounts to invest in alternative assets such as cryptocurrencies, opening a large new pool of capital for Bitcoin [4].
Political and financial forces linked to the Trump administration have reduced regulatory barriers, further encouraging institutional participation and adoption within mainstream finance [4][5]. Market analysts and investment managers forecast Bitcoin could reach $160K by the end of 2025, with some optimistic projections going as high as $180K in 2025 [1][3]. Longer-term institutional adoption may push Bitcoin to even higher valuation levels above $350K by 2031 according to some forecasts [1].
However, it's important to note that Bitcoin price remains volatile and driven largely by sentiment rather than intrinsic fundamentals, meaning the price trajectory can be unpredictable despite strong momentum and optimistic outlooks [3].
Another factor influencing Bitcoin's price is the increase in the circulating supply of Tether, the largest stablecoin. Past increases in Tether's circulating supply have often been a precursor to Bitcoin's upward trend. The market capitalization of Tether has reached a new record high of over $120 billion, indicating increased inflows into the crypto market [6].
Bitcoin continues to outperform the entire altcoin market, suggesting a strong investor preference for the largest and most liquid cryptocurrency. The Bitcoin Fear & Greed Index has risen from 31 points to 73 points in ten days, indicating increasing investor greed [7]. This article was first published in the new print edition of BÖRSE ONLINE.
It's worth mentioning that the board member and CEO of the publisher Boersenmedien AG, Mr. Leon Mueller and Mr. Bernd Foertsch, respectively, have positions in Bitcoin. Institutional investors prefer to engage in the crypto market via large and liquid vehicles like Bitcoin ETFs, with one of the highest net inflows ever into Bitcoin ETFs last week, totalling over $2.1 billion [8].
However, for Bitcoin to continue its upward trend, it needs to fall below its old all-time high of around $74,000 from March. Stablecoins like Tether are considered a gateway for trading cryptos, providing a stable value against which to trade other volatile cryptocurrencies [9]. Despite a recent decline in investments in crypto startups, the growing interest in Bitcoin and other cryptocurrencies suggests a promising future for this burgeoning market.
Technology plays a crucial role in the increasing mainstream adoption of Bitcoin, as institutional investors engage with the crypto market through Bitcoin ETFs, demonstrating the growing interest in this digital asset [1][8]. The optimistic outlook for Bitcoin's price is also fueled by advancements in technology, such as the development of stablecoins like Tether, which serve as a gateway for trading other volatile cryptocurrencies [9].
