Bitcoin (BTC) surged past a new all-time high on December 16th, exceeding $106,535 and solidifying its position as a top performer in 2024. This record-breaking run coincides with the news of its top holder, MicroStrategy, entering the prestigious Nasdaq 100 Index.
The cryptocurrency has witnessed a remarkable 136% increase year-to-date, with a significant portion of these gains occurring after the recent election. Anticipation of pro-cryptocurrency policies and the inclusion of crypto-focused companies in a major Wall Street index have fueled both short-term and long-term bullish sentiment among investors.
Analysts Predict Further Price Climbs
Veteran analyst Peter Brandt believes Bitcoin’s current bull run is far from over, potentially reaching $120,000. His technical analysis suggests a breakout from a bullish flag pattern, historically indicating further price increases. This aligns with year-end price targets set by other analysts like CryptoQuant’s CoinLupin.
Everything else is a pretender $BTC pic.twitter.com/sKRVFQ8Hkw
— Peter Brandt (@PeterLBrandt) December 15, 2024
Fibonacci Extensions Point to $155,500
Historical performance and Fibonacci extensions suggest Bitcoin might be on track to hit even higher levels, potentially reaching $150,000-$154,000. In previous cycles, the cryptocurrency consistently surpassed the 1.618 Fibonacci extension level before further advancements. With Bitcoin having already surpassed this level at around $102,000, the next major milestone could be the 2.618 level near $155,500.
Long-Term Optimism: $800,000 by 2025?
Analysts are projecting a staggering price target of $800,000 for Bitcoin by the end of 2025. This prediction is based on Bitcoin’s capped supply and the anticipated favorable policy environment.
PlanB, creator of the popular stock-to-flow model, predicts Bitcoin’s average price to reach $500,000 in 2025 with potential highs exceeding $1 million. Perianne Boring, founder of The Digital Chamber, echoes this optimism, citing the stock-to-flow model and the possibility of supportive policies.
Personnel is policy: Perianne Boring pic.twitter.com/52IPUr2owR
— Mornings with Maria (@MorningsMaria) December 13, 2024
The stock-to-flow model suggests Bitcoin’s market cap could surge from its current $2 trillion to a staggering $15 trillion, potentially driving the price towards $800,000.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Grayscale Bitcoin Trust Faces $21 Billion in Outflows, Overshadowing Gains from US Spot Bitcoin ETFs
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