Bitcoin has recently made headlines with an impressive price rally of over 8.5% in just one week, reaching approximately $64,000. This surge has ignited speculation among crypto enthusiasts, with many analysts predicting that BTC could soar by an astonishing 171% in the upcoming fourth quarter. But could Bitcoin really hit $172,800 by the end of 2024?
Historical Performance And Predictions
Popular crypto analyst Ali Martinez has drawn parallels between Bitcoin’s current trajectory and its performance during previous halving events in 2016 and 2020. Historically, Bitcoin experienced a remarkable 61% increase in Q4 of 2016 and a staggering 171% in Q4 of 2020. If Bitcoin follows this trend, analysts suggest that we could see the price range between $100,000 and $172,000 by year’s end.
This optimism is fueled by recent developments, including a 50 basis point cut by the Federal Reserve. Such liquidity injections can create a favorable environment for risk assets like Bitcoin. Currently, Bitcoin has been trading within a tight range of $50,000 to $70,000, but the recent Fed stimulus could be the catalyst for a significant breakout.
Key Market Dynamics
Recent on-chain metrics indicate that major players are confident in Bitcoin’s future. For instance, MicroStrategy made headlines with a massive $450 million purchase of BTC just days ago, underscoring strong institutional interest. This kind of activity suggests that large investors are preparing for a bullish run, which could further support Bitcoin’s price.
A recent report from 10X Research highlights the improving market structure, noting a rise in stablecoin minting and increasing futures leverage. This signals a growing appetite for Bitcoin among traders. However, for Bitcoin to capitalize on this momentum, it needs to break above the $65,000 mark.
As of now, Bitcoin is trading at $63,549, reflecting a 0.96% increase and a market cap of approximately $1.255 trillion. With the bankrupt crypto exchange FTX preparing to distribute $16 billion to creditors, analysts believe that this liquidity could flow back into Bitcoin and the broader crypto market, potentially igniting further rallies.
The Broader Market Context
With Bitcoin on the rise, many market analysts anticipate that an “Altseason” could be just around the corner. Ethereum has already demonstrated strength, gaining 16% in the past week. However, the increasing deposits from Ethereum whales have left some analysts puzzled about the future direction of ETH.
Also Read: Gold Hits All-Time High Of $2,629 – Will Bitcoin Follow With Predicted Breakout To $70,000?
Moreover, Bitcoin ETFs are gaining momentum again, with significant inflows of $397 million over the past week. The Fidelity ETF FBTC is leading the charge, reflecting renewed institutional interest in Bitcoin.
As Bitcoin continues its upward trajectory, the fourth quarter promises to be pivotal for the cryptocurrency. With historical patterns suggesting potential for massive gains and key market dynamics aligning favorably, the question remains: will Bitcoin reach $172,800? Only time will tell, but the excitement surrounding Bitcoin is palpable, setting the stage for an exhilarating end to the year.
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.
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