30s Summary
Matt Hougan of Bitwise predicts that Bitcoin will reach $100,000 within a year. Bitcoin ETFs have seen $2.11 billion in net inflows since October, and now manage over $60 billion, demonstrating considerable interest in Bitcoin. The US Presidential election and the candidates’ differing views on cryptocurrency regulation also play a part. The rising US government debt makes assets like Bitcoin more attractive. Increased interest payments on the debt could lead to economic overheating. China’s spending boosts and the close correlation between Bitcoin and the global money supply are further factors. Finally, large-scale Bitcoin investors have caused a supply shock by buying up 1.6 million BTC.
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Bitcoin (BTC) has been tipped by many investors and analysts to reach a whopping $100,000 within the next year. One of these believers is Matt Hougan, the top dog at Bitwise, who reckons Bitcoin’s price will rocket above six figures.
So, what’s the data saying about Bitcoin shooting to $100,000 and beyond? Let’s dive in!
First off, spot Bitcoin ETFs are making waves, pulling in a cool $2.11 billion in net inflows since October 11. This proves there’s heaps of interest in Bitcoin, especially since these ETFs only kicked off in 2024 and already manage assets worth over $60 billion.
Looking at bigger picture stuff, the upcoming US Presidential election on November 5 plays a role. Trump, who’s the Republican candidate, seems pretty chuffed about Bitcoin and other cryptocurrencies. On the other side, Kamala Harris appears to be pro-regulation and could promote the growth of crypto-related ventures in the US.
Another important factor at play is the massive US government debt, which is honestly looking a bit iffy right now. In just a fortnight, US public debt went up by $500 billion, clocking in at a record $35.8 trillion. All this crazy spending diminishes the value of the US dollar, making sought-after goodies like Bitcoin, gold, and stocks more appealing.
Now, interest payments on US public debt have skyrocketed, topping $3 billion a day. This puts the Federal Reserve in a tough spot – slashing interest rates might stir up inflation and possibly cause the economy to overheat. Oh, and did we mention China’s recent spending boosters? They’re nudging Bitcoin’s price toward the $100 grand mark too.
Historically, Bitcoin has been best mates with global money supply, which is the total dough available in the economy. More cash floating around means investors are more willing to gamble for better returns, particularly during good economic times.
Lastly, the “whales” (a.k.a large-scale Bitcoin holders) are off on a Bitcoin shopping spree, stocking up 1.6 million BTC in just half a year. This buying frenzy is causing a “supply shock,” as Bitcoin available on the market falls short of the rising demand from big investors.
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Remember, this article is purely informational. Don’t take it as financial or legal advice! The opinions here are only from the writer and don’t necessarily mirror what Cointelegraph thinks. Cheers!
Source: Cointelegraph