Key Insights

• Bitcoin has been rallying strongly lately and will test the $91,000 price level soon.
• Institutional investors are in a state of FOMO and are jumping in via the ETF market.
• MicroStrategy also recently bought billions worth of the cryptocurrency this week.
• Crypto trades at an “extreme greed” level, and analysts warn of a possible pullback.
• Veteran analyst Peter Brandt says Bitcoin could hit a high of $125,000 this year.
• Titan of Crypto believes Bitcoin technicals are strong enough to see it hit $158,000

Bitcoin isn’t taking no for an answer this time around and has surged to an impressive new all-time high.

This week, the cryptocurrency has managed to notch a new high between $88,440 and $89,000.

BTC’s new price tag has helped it push its market cap beyond silver.

It now has a market cap of $1.74 trillion and is one of the world’s most valuable assets.

However, despite this achievement, BTC’s market cap still stands far beneath Gold’s (with a staggering $17.594 trillion).This makes Gold easily ten times more valuable than Bitcoin.

Let’s see what’s been happening with the flagship cryptocurrency so far and what might lie ahead.

Major Factors Fueling Bitcoin’s Price Surge

It turns out that several factors are responsible for the ongoing Bitcoin uptick.

The first is the rising institutional demand from ETF and non-ETF investors.

As Ali puts it, institutional FOMO has kicked in fully.

Companies worldwide are now putting Bitcoin on their balance sheets and accepting the cryptocurrency as a means of payment.

The spot Bitcoin ETF market itself has attracted billions in inflows in a matter of days.

According to data from Farside, in the last three trading days before writing, the market has seen inflows of nearly $3 billion.

One of the biggest of these three days even saw a staggering $1.37 billion right after the recent U.S. Federal Reserve rate cut by 25 basis points.

Another factor is Donald Trump’s presidential victory, which bolstered confidence in the crypto space.

There are now serious conversations about the U.S. adopting BTC as part of its national reserve.

Finally, MicroStrategy’s most recent purchase of 27,200 BTC for a whopping $2.03 billion was the final straw for the bears.

This massive purchase pushed the company’s Bitcoin holdings to 279,420 BTC, valued at over $25 billion, according to SaylorTracker.

It is also worth mentioning that the total crypto market cap has hit a new peak of $3.12 trillion.

This makes crypto collectively close to France’s GDP!

In essence, if the crypto market were a country, it would be the world’s eighth-largest economy.

It would also be right behind countries like the United States, China, and Japan.

Notably, Bitcoin’s market cap alone is currently beating Spain’s GDP. The cryptocurrency is worth more than some of the world’s leading companies like Microsoft.

If Bitcoin continues to grow at this rate, it might be competing with tech giants like Nvidia and Apple.

Market Analysts’ Caution Amid Bullish Sentiment

Even though Bitcoin’s momentum has inspired optimism, analysts are still cautious.

This surge has led to higher funding rates in perpetual swaps and a seven-month basis yield increase.

All of the above simply means that the market is in a state of Euphoria.

It also goes without mentioning that the Bitcoin fear and greed index is showing extreme greed levels at the time of writing.

This has led analysts to warn of possible pullbacks in BTC’s price any minute.

Will It Hit $125,000?

The short answer to this is yes, according to Veteran trader Peter Brandt and other analysts.

Brandt says that Bitcoin’s price may continue to soar, according to Bayesian probability analysis.

Based on its historical patterns, the cryptocurrency can hit $125,000 by the end of the year.

For some context, Bayesian probability is a statistical method based on past trends.

It allows traders to predict the future of certain assets based on conditions from past bull runs.

Another trader known as “Titan of Crypto” believes the cryptocurrency can go even higher to $158,000.

This prediction is based on the cryptocurrency’s bullish pennant pattern and a golden cross on its weekly chart.

While $125,000 is great enough on its own, Titan of Crypto says that the cryptocurrency’s structure is strong enough to push towards $158,000 in 2024.

What Should Bitcoin Investors Know?

As Bitcoin breaks records and climbs in value, here are a few things investors should keep in mind.

The ongoing institutional flows into the spot ETFs show that investors are confident in cryptocurrency as a long-term asset.

Because of this, ETF flows might be a great metric for determining what’s happening with cryptocurrency.

Furthermore, Federal Reserve policies will likely continue impacting Bitcoin’s price movements.

Investors should watch for possible corrections or profit-taking activity from the whales as Bitcoin tests new levels.

Overall, analysts remain optimistic and are predicting six-figure targets for BTC’s price.

At the same time, Bitcoin’s success at reaching these levels will depend on its ability to balance market sentiment, institutional involvement, and macroeconomic factors.