Forecasting the future cost
Can Bitcoin Reach a New All-Time High of $66,700 as U.S. Inflation Eases and Fed Rate Cuts are Discussed?
Bitcoin (BTC) has experienced a significant surge in its price, reaching a high of $66,700 on May 16. Currently, the price stands at around $65,800. This increase in price follows the release of U.S. economic data, which showed a slight easing of inflation. The consumer price index (CPI) rose at an annual rate of 3.4% in April, down from 3.5% the previous month.
The CPI data suggests a potential downward trend in the cost of living, leading to speculation about a possible rate cut by the Federal Reserve (Fed). Other central banks, such as the Bank of England (BOE) and the European Central Bank (ECB), are also expected to cut rates in June. This indicates improved market liquidity for risk assets, including cryptocurrencies.
BTC, like other risk assets, is influenced by changes in the monetary policies of major central banks. When the cost of borrowing fiat money is expected to decrease, BTC tends to rally.
In addition to the discussion surrounding inflation and rate cuts, the recent appointment of Salim Ramji as the new CEO of Vanguard has raised industry speculation about the introduction of spot Bitcoin ETFs under his leadership. Ramji has a pro-Bitcoin and blockchain technology perspective. However, he has stated that he intends to maintain consistency with Vanguard’s investment philosophy and product offerings.
The public reaction to Bitcoin’s surge has generally been positive. There is growing interest and participation in Bitcoin from institutional investors. ETF analyst Eric Balchunas mentioned the diversity of institutional investors participating in the spot Bitcoin ETF IBIT. In its first 13F filing season, IBIT reported 414 holders, a number typically achieved years after a product’s launch. This indicates the growing institutional interest in Bitcoin.
Anthony Scaramucci, founder of SkyBridge Capital, notes that skeptics are now embracing Bitcoin for the long term after conducting thorough research. This suggests a cycle of increasing acceptance among mainstream investors. Some in the community are even predicting that the third and fourth quarters of 2024 will be particularly fruitful for Bitcoin in terms of price gains.
Based on Bitcoin’s recent behavior, including its breach of the $65,000 resistance level, trading expert TradingShot has set an ambitious target of $150,000 for BTC by August 2024. This prediction is supported by Bitcoin’s current upward growth and its ability to maintain strong support levels.
Renowned analysts Michaël van de Poppe and Titan of Crypto also have positive outlooks for BTC’s price. Van de Poppe predicts a period of calm, upward movement for BTC, which could lead to increased market confidence and benefit altcoins as well. Titan of Crypto suggests a price cycle top of $108,000 for BTC based on Fibonacci circles, but believes that BTC’s price could exceed this prediction.
Trader and analyst Peter Brandt shares a bullish outlook for BTC based on his preferred interpretation of the data.
However, it is important to conduct your own research and consider your risk tolerance before making any investment decisions. Predictions can go wrong, so it is advisable to never invest more than you can afford to lose.
