Bitcoin price has been steadily rising throughout 2024, with multiple indicators suggesting that this uptrend is likely to continue according to cryptocurrency analyst Michael Van De Pope. As such, the cryptocurrency analyst has revealed five key reasons why Bitcoin could be on the verge of hitting an all-time high. His analysis includes technical indicators and external market factors that are setting the stage for Bitcoinâs next major bull run.
Federal Reserve Rate Cuts and Economic Sentiment
According to Michael Van De Pope, a major reason for Bitcoin's recent price surge is the growing likelihood of a Federal Reserve rate cut. As a result, risk-on sentiment has increased among investors as the market prices in the possibility of a rate cut. With their interest in alternative assets like Bitcoin, this economic outlook has made riskier investments more attractive overall, given the weak interest rates.
Van De Pope noted that expectations surrounding the Federal Reserveâs decisions were a key driver behind the recent BTC price surge, with the possibility of more liquidity flowing into the market.
Besides the Fed, Van De Pope also noted that other macroeconomic factors such as strong Wall Street earnings and growing crowd confidence are helping Bitcoin rise further. According to him, if the economy continues on a positive trajectory, the value of BTC could continue to rise even higher.
Whale Accumulation Points to Institutional Confidence
Another bullish signal is the recent increase in whale activity in the Bitcoin market. According to on-chain analysis, the rate of BTC accumulation by large holders (known as 'whales') has accelerated since mid-2024.
Van De Pope noted that similar whale accumulation patterns have emerged before previous Bitcoin bull runs, particularly before the 2020-2021 bull run when prices reached new record highs.
Crypto whales have a habit of accumulating during periods of price stability, a sign that they have confidence in future price increases. In most cases, this accumulation is followed by large price movements as large holders position themselves for expected price increases. Van De Pope points out that this is one of the most reliable signs of another major Bitcoin breakout.
Indicators Signaling an Imminent Bitcoin Price Breakout
Bitcoin is showing strong signs of an imminent breakout, according to a crypto analyst's technical analysis. Van De Pope points out that Bitcoin's price action on a two-month logarithmic chart closely mirrors past bull cycles.
Historical patterns show that Bitcoin often consolidates for long periods before starting a sharp and rapid price increase, following a parabolic trajectory.
Michael Van De Pope added that Bitcoin's current price action is consistent with previous bull market cycles in 2012, 2017, and 2020. He believes that if Bitcoin can maintain its position above key resistance levelsâsuch as $65,000âit could trigger a move toward new record highs. His analysis also suggests that Bitcoin could surpass $100,000 by 2025, based on the continuation of these patterns.
The Decline of Stablecoin Dominance
The significant decline in stablecoin dominance is another factor that Van De Pope believes could fuel BTC's rise. Stablecoin dominance has been declining since mid-2024, suggesting that investors are moving capital out of stablecoins and into more volatile assets like BTC.
Historically, this trend signals the start of a broader bull run in the market as more liquidity flows into Bitcoin and other cryptocurrencies.
Michael Van De Pope argues that the declining use of stablecoins reflects an increasing appetite for risk among investors, which often coincides with a shift to assets like Bitcoin. This shift suggests that market participants are positioning themselves for potential upside, anticipating that BTC will appreciate further against the US dollar.
Bitcoin ETFs and Institutional Adoption
Another major catalyst that Van De Pope pointed out is the approval of a Bitcoin ETF on the New York Stock Exchange (NYSE). This new financial product allows institutional investors to access BTC through a regulated vehicle, increasing market access and liquidity.
The crypto analyst noted that the approval of BTC ETFs has historically boosted demand and helped push Bitcoin prices higher.
With Bitcoin currently trading just 7.5% below its all-time high, increased liquidity from ETF inflows could provide the final push needed for Bitcoin to break above its previous price barriers. The introduction of more financial products tied to Bitcoin is expected to attract institutional interest, which could further support the assetâs long-term price growth.