Bitcoin is rapidly approaching the $100,000 psychological level, having reached a historic high of over $97,000 on November 21. This major rally is being fueled by the interest of institutional investors, significant capital inflows from US spot ETFs, and the influence of companies like MicroStrategy.$BTC
On Thursday, November 21, the Bitcoin price broke through $97,000, marking a significant milestone. This record not only marks a price increase, but also a critical shift in Bitcoin’s market structure. Experts predict that this rally is indicating that Bitcoin has entered a parabolic phase, and that the psychological barrier of $100,000 will be broken in the near future.
Peter Brandt’s Year-End Prediction: $137,000
Famous analyst Peter Brandt has stated that Bitcoin will continue its rise until the end of the year and could potentially surpass $137,000. According to Brandt, this rise is in line with Bitcoin’s historical cycles and should be seen as a reflection of the general momentum in the crypto market.
Institutional investors have been playing a major role in Bitcoin’s price rally. Following the approval of US-based spot Bitcoin ETFs, there has been a huge inflow of capital into the markets. According to Glassnode data, Bitcoin has seen a total of $63 billion in capital inflow from both spot ETFs and spot markets in the last 30 days. Currently, US-based spot Bitcoin ETFs are worth around $100 billion and hold a total of more than 1 million Bitcoins.
MicroStrategy’s aggressive Bitcoin buying continues to create “FOMO” (fear of missing out) among institutional investors. The company’s Bitcoin strategy is also mobilizing other large investors, further reinforcing the rise in Bitcoin’s price. This strategy is increasing the upward pressure on the market, allowing Bitcoin’s price to rise even higher.
According to the Financial Times, Donald Trump’s social media platform Truth Social is in talks to acquire crypto trading firm Bakkt. News of the potential acquisition of Bakkt, which is backed by NYSE owner Intercontinental Exchange, was another major factor supporting Bitcoin’s price rally.
As Bitcoin’s market dominance grows, the altcoin market is going through a tough period. Famous analyst Benjamin Cowen predicts that Bitcoin’s dominance could reach 66% by the end of the year. This could lead to a further delay in the start of the altcoin season, possibly until early 2025. The decline in altcoins has largely shifted investors’ attention to Bitcoin. This upward trend in Bitcoin is reshaping the dynamics of the crypto market and reducing interest in altcoins.
Bitcoin’s performance this year has been a process that the entire crypto world has been following closely. 2024 may go down in history as a year in which Bitcoin consolidates its dominance in the cryptocurrency ecosystem and gains more adoption from investors.