Bitcoin (BTC) hit a new all-time high on Friday (22), briefly trading at $99,500 before retreating slightly. The cryptocurrency is currently trading at $98,675.
With trading activity heightened as the market awaits a breakout above the psychological $100,000 level, digital asset research firm 10X Research predicts BTC could surge to $115,000 by Christmas.
Why Bitcoin Could Hit $115K Soon
In its new report, 10X Research found that the BTC market has become flush with liquidity in recent weeks, a key factor that could propel the asset’s price toward the projected $115,000 mark.
Stablecoin issuer Tether has issued $10 billion in the past month. Additionally, Circle has added $3 billion in the same period, boosting market momentum. This has resulted in a corresponding increase in stablecoin inflows to cryptocurrency exchanges over the past month.
In a post on X, Leon Waidmann, head of research at The Onchain Foundation, confirmed this.
Stablecoin inflows to exchanges hit $9.7 billion in 30 days! BIGGEST monthly inflow EVER. Stablecoin liquidity is back. Speculative demand continues to explode, he said.
Net flows of stablecoins to exchanges. Source: X
The increase in stablecoin inflows to cryptocurrency exchanges is a bullish sign. This is because it usually leads to increased buying pressure, pushing up crypto asset values.
This massive surge in liquidity is reflected in high trading volumes, with spot volumes consistently exceeding $200 billion daily. The cryptocurrency market capitalization has surpassed $3.2 trillion, equaling the size of the U.K. stock market, 10X Research wrote.
Trader activity in the BlackRock Bitcoin ETF (IBIT) options market is another reason why its price could surge to $115,000 by Christmas. 10X Research found that as of Nov. 22, calls on IBIT outnumbered puts by 5.5 to 1, up from 3.8 to 1 on Thursday.
Buyers of call options are also targeting strike prices in the 110-120% range, suggesting they expect the price of Bitcoin to rise beyond $100K soon.
Price prediction
According to the research firm, “This dynamic could trigger a short gamma squeeze, causing the Bitcoin price to gravitate towards these levels. As a result, $100K could be just another checkpoint in Bitcoin’s upward trajectory.”
A sustained buying momentum could push the coin back to its all-time high of $99,500 and potentially beyond. Establishing this level as support could pave the way for a surge towards new highs.
Bitcoin Price Analysis. Source: TradingView
On the other hand, if the buying pressure weakens, the price could drop to $88,816, where its next major support is. This will invalidate the above bullish outlook.
The article Bitcoin could hit $115,000 soon, report suggests was first seen on BeInCrypto Brasil.
