Bitcoin’s recent surge, which briefly topped $87,700, stems from a weaker dollar and speculation about an upcoming buyback of U.S. Treasuries. Arthur Hayes, co-founder of BitMEX and CIO of Maelstrom, predicted that this could be the “last chance” to buy Bitcoin at prices below $100,000, as the U.S. Treasury’s buyback of its own debt could inject more liquidity into the market. Hayes called these buybacks a “bazooka” for Bitcoin prices, which could push it to the $100,000 mark.
Bitcoin’s gains have also been supported by macroeconomic conditions, including a weaker dollar, which fell to its lowest point since March 2022. As the dollar falls, Bitcoin becomes more attractive to investors seeking a hedge.
This sentiment is further amplified by the growing correlation with gold, which has risen nearly 30% this year. Bitget Research chief analyst Ryan Lee highlighted that the “descending wedge breakout” seen in Bitcoin’s technical chart supports this bullish view.
Global institutional interest in Bitcoin remains strong. Despite recent market volatility, investment firms from Japan and the United Kingdom continue to pour money into the cryptocurrency, indicating that investors remain confident in Bitcoin’s long-term potential. With Bitcoin prices approaching resistance at $90,000, analysts such as Jamie Coutts of Real Vision predict that the cryptocurrency’s price could climb to $132,000 by the end of the year, driven by the expansion of the fiat money supply (M2). Coutts’ prediction is in line with economist Timothy Peterson, who believes that Bitcoin’s price could reach $138,000 in three months, given similar market patterns in the past.
As Bitcoin prices move strongly, the political climate adds another layer of uncertainty. President Donald Trump’s call to remove Federal Reserve Chairman Jerome Powell has fueled expectations of rate cuts, which could further weaken the dollar and benefit Bitcoin’s gains. The impact of this political pressure, combined with ongoing macroeconomic factors, could set the stage for Bitcoin’s continued rise.
Despite the positive outlook, some analysts remain cautious. Michaël van de Poppe warns that the weekend price gains could be misleading and Bitcoin could experience a period of decline before breaking through important resistance levels. The next major resistance level is expected to be around $91,000, and before breaking through this level, a short-term price correction is still possible.
The confluence of debasement of fiat currencies, increased institutional support, and Treasury buybacks creates a potentially favorable environment for Bitcoin prices to continue to rise to $100,000 and even higher.
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