Bitcoin price hit an all-time high of $106,000 on Monday. This surge represents a remarkable 150% increase since the beginning of the year. After briefly consolidating earlier in December when it crossed the $100,000 milestone, Bitcoin now eyes new peaks. But what catalysts remain to push BTC prices even higher?
Petr Kozyakov: Bitcoin Is in Uncharted Waters
Petr Kozyakov, CEO of crypto payments platform Mercuryo, stated that Bitcoin has entered “uncharted waters.” In his recent comments, Kozyakov said:
“Bitcoin’s rise to $106,000 demonstrates that market exuberance is at play as we enter the final weeks of 2024.”
Mena Theodoru, co-founder of crypto exchange Coinstash, noted that $100,000 has become a psychological support level in the market. As reported by technical analysts, this record is unlikely to remain untouched for long.
With two weeks remaining until the end of the year, many experts remain optimistic that Bitcoin’s price will climb further. Shannon Kurtas, trading manager at Kraken, remarked:
Bitcoin’s price continues to rise amid expectations of strong demand and important catalysts driving it upward.” As it stands, Bitcoin holds three key cards that could push its price even higher.
Here Are the Three Factors That Will Push Bitcoin’s Price Up Further:
Supply Crunch: Bitcoin Is Becoming Scarcer
Massive Bitcoin withdrawals from crypto exchanges are rapidly reducing its available supply on the market. Crypto research platform 10x Research highlighted this in its Monday report:
Large outflows from cryptocurrency exchanges are significantly limiting Bitcoin’s availability on trading platforms. At the same time, OTC market inventories are running low. This situation indicates a significant price squeeze potential for Bitcoin.
According to data from Coinglass, in the past week alone, 180,000 Bitcoin has flowed out of major exchanges like Coinbase, Binance, Bitfinex, and Gemini. This trend has accelerated since Donald Trump’s election victory. For comparison, between late July and November 4, only 40,000 Bitcoin had been withdrawn.
Trump Effect: Bitcoin Hopes Rise Under the New Administration
Donald Trump’s victory has introduced the potential for BTC to gain legitimacy at the state level. Trump has specifically promised to create a strategic Bitcoin reserve for the United States, a move with global implications. Tim Kravchunovsky, CEO of Chirp, shared his thoughts:
If the U.S. builds a Bitcoin reserve, it will trigger a FOMO effect (fear of missing out). Other countries and sovereign wealth funds will feel compelled to include Bitcoin in their portfolios.
Experts from 10x Research forecast that Bitcoin could surge to $120,000 by Trump’s January 20 inauguration.
Macro Tailwinds: Dovish Monetary Policies
The shift toward lower interest rates by major economies is laying a strong foundation for Bitcoin’s continued price growth. Historically, Bitcoin has performed well during periods of loose monetary policies.
According to FedWatch data, there is a 97% likelihood that the U.S. Federal Reserve will cut interest rates to 4.25%–4.50% at its December 18 meeting. Lower interest rates typically encourage investors to allocate capital to riskier assets like BTC.
Similarly, Canada and Switzerland recently cut interest rates, while the European Central Bank continues its dovish stance. In addition, China announced a massive $284 billion stimulus package in September to stimulate economic growth. These global measures further support a bullish outlook for BTC.
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