Galaxy Research expects Bitcoin to retest $100K soon, driven by institutional adoption, nation-state reserves, and a pro-crypto U.S. administration.

Bitcoin Bull Market Has More Room to Run, Says Galaxy Research

Bitcoin’s (BTC) bull market is far from over, with the cryptocurrency poised to break the $100,000 mark in the near term, according to a new report by Galaxy Research. The report highlights a combination of factors, including institutional adoption, potential nation-state reserves, and a supportive U.S. administration, as reasons for Bitcoin's continued ascent.

Key Factors Driving Bitcoin’s Ascent

1. Increasing Institutional and Corporate Adoption

  • Institutions are adopting Bitcoin at unprecedented levels, driven by its potential as a store of value and inflation hedge.

  • The recent introduction of Bitcoin ETF options has increased market liquidity and attracted institutional investors.

2. Bitcoin as a Nation-State Reserve

  • The report speculates on the possibility of governments holding Bitcoin (BTC) as part of their national reserves, further bolstering its status as a global asset.

3. Pro-Crypto U.S. Administration

  • The shift to a pro-crypto administration under President-elect Donald Trump is expected to create a favorable regulatory environment, spurring both retail and institutional demand.

  • However, regulatory jitters from the outgoing Biden administration may cause short-term market volatility.

Unique Market Setup Over the Next Two Years

Bullish Market Positioning

Alex Thorn, head of research at Galaxy, describes the current market conditions as “unique and bullish,” citing strong options market activity.

  • The launch of ETF options has reduced volatility and improved liquidity, making the market more attractive for large-scale investors.

Short-Term Outlook

Bitcoin (BTC) is trading at $94,600, up 2.8% on the day. The broader digital assets index, CoinDesk20 (CD20), rose more than 3%, reflecting overall market optimism.

Challenges Ahead

Galaxy warns of potential hurdles:

  • Regulatory Actions: The outgoing Biden administration could enact last-minute regulations that may unsettle markets.

  • Market Volatility: While the long-term outlook is bullish, short-term corrections remain a possibility.

Bitcoin Bull Market Set for New Highs

With robust institutional adoption, the potential for nation-state reserves, and favorable regulatory winds, Bitcoin is well-positioned to break through the $100,000 barrier. While challenges remain, the long-term setup suggests a unique and bullish trajectory over the next two years. according to CoinDesk.

#BTC