Many analysts aren’t surprised by the recent price surge of Bitcoin to $80,000, given Donald Trump’s convincing victory in the recently concluded US national elections.
Some market analysts and observers offer even bolder projections, fueled by rumors of a Bitcoin strategic reserve and the possible approval of the Bitcoin Law.
Trading firm QCP is one of those analysts taking a bullish stance on the crypto, predicting that the top digital asset will break $120,000 soon.
QCP cites the administration of incoming President Donald Trump, the plan to create a strategic BTC reserve, and updated US inflation data as critical drivers for the asset’s price.
Favorable Market Conditions Boost Bitcoin Price
Bitcoin’s price surge continues this week, hitting another all-time high of $93,120, boosting the global cryptocurrency market cap to over $3 trillion.
The rally comes as the US government released its inflation data, with headline and core inflation numbers at 2.60% and 3.30%, respectively, in line with expectations.
Also, analysts are confident of a potential 25 basis point rate cut from the December Federal Open Market Committee meeting. Many say that a shift in monetary policy boosts optimism among risk-based assets, including Bitcoin.
$100k To $120k For BTC Possible, Says QCP
In the Twitter/X post, QCP Trading predicts that Bitcoin can hit $100k to $120k. The post added that BTC price action benefits from proposals to create a BTC strategic reserve and the government’s potential shift from gold to digital asset.
QCP: In view of Bitcoin’s impressive rally since the US election, our view is that $100,000 – $120,000 may not be too far off. Trump idea of launching a strategic BTC reserve and rotation from Gold to BTC, provides a strong narrative that keeps BTC prices supported.…
— Wu Blockchain (@WuBlockchain) November 15, 2024
However, QCP cautions the industry about excessive leverage in altcoins. It added that perpetual funding rates have increased between 50% and 100%, primarily due to heavy-leveraged buying.This scenario increases the risk of a deleveraging event, putting downward pressure on prices.
Other Analysts See Continuous BTC Price Surge
Aside from QCP, several other analysts and financial institutions are examining Bitcoin’s bullish trend. Matthew Sigel of VanEck is also optimistic about the direction of digital asset prices.
Bitcoin’s price has increased by 30% since the elections, and based on VanEck’s proprietary indicators, the trend is likely to continue.
Sigel also noted the market’s favorable sentiment on Bitcoin, thanks to the re-election of Trump and other crypto-friendly personalities. Based on VanEck’s projections, the alpha coin can top $180k by next year.
Rekt Capital echoes VanEck’s outlook, suggesting that the asset has entered a “parabolic upside.” The market analyst further stated that this stage can last up to 385 days, creating plenty of opportunities for traders and investors to profit.
Featured image from Pexels, chart from TradingView
