Emily Walker
The recent rise in the price of Bitcoin to $80,000 has left many analysts unfazed, particularly following Donald Trump’s decisive win in the recent US elections.
Some market watchers are making even more ambitious predictions, spurred on by speculations of a strategic Bitcoin reserve and the anticipated approval of the Bitcoin Law.
Among these analysts, trading firm QCP stands out with a particularly optimistic forecast, suggesting that Bitcoin’s value could soon exceed $120,000.
QCP attributes this potential increase to the upcoming Trump administration, plans for a strategic reserve for BTC, and recent US inflation data, all of which are seen as key catalysts for the asset’s growth.
Supportive Market Conditions Elevate Bitcoin Value
Bitcoin’s upward trend continues, having reached a new all-time high of $93,120, thereby elevating the total market capitalization for cryptocurrencies to over $3 trillion.
This increase follows the US government’s inflation report showing headline inflation at 2.60% and core inflation at 3.30%, aligning with expectations.
Moreover, there is growing confidence in a possible rate cut of 25 basis points during the December Federal Open Market Committee meeting. Analysts believe that adjustments in monetary policy contribute to a more favorable environment for riskier assets like Bitcoin.
QCP Predicts Bitcoin Range of $100k to $120k
In a post on Twitter/X, QCP suggested that Bitcoin could achieve a price range between $100,000 and $120,000. The analysis emphasized that Bitcoin’s price movement is positively influenced by proposals for a BTC reserve and a potential government shift from gold to digital assets.
QCP: In light of Bitcoin’s significant rally following the US election, we believe $100,000 – $120,000 is within reach. Trump’s idea of establishing a strategic BTC reserve and the shift from Gold to BTC create a compelling narrative that supports BTC prices.…
— Wu Blockchain (@WuBlockchain) November 15, 2024
Nevertheless, QCP advises caution regarding the high levels of leverage in altcoins, noting a surge in perpetual funding rates by 50% to 100% due to significant leveraged purchasing, which carries the risk of a market correction that could depress prices.
Continued Optimism from Other Analysts
Besides QCP, numerous analysts and financial organizations are scrutinizing Bitcoin’s positive trajectory. Matthew Sigel from VanEck also shares a hopeful outlook on digital asset prices.
Since the elections, Bitcoin’s price has risen by 30%, and VanEck’s indicators suggest this trend may persist.
Sigel highlighted a favorable market sentiment towards Bitcoin, enhanced by Trump’s re-election and other pro-crypto figures. VanEck’s projections foresee Bitcoin possibly reaching $180,000 by next year.
Rekt Capital supports VanEck’s optimistic perspective, indicating that the asset may be on a “parabolic surge,” a phase that could last up to 385 days, offering ample opportunities for both traders and investors to gain profits.
Featured image from Pexels, chart from TradingView