Bitcoin In Flux: Bearish Trends Cant Deter $100,000 Price Predictions, CNBC
Following a volatile week, Bitcoin (BTC) has once again captured the attention of investors as it fluctuates between bearish and bullish sentiments. Earlier this week, the leading cryptocurrency retracted to the $59,800 mark after reaching a two-month high of $66,500 at the end of the previous week. Despite these fluctuations, analysts express confidence that Bitcoin could reach new records by years end.
Could Bitcoin Prices Rise As Year-End Approaches?
As noted in a recent CNBC report, a recent resurgence in demand for Bitcoin exchange-traded funds (ETFs) offers a glimmer of hope for the cryptocurrencys price in the medium term.
However, demand for BTC remains stagnant and needs a significant boost to facilitate any upward movement in its price. John Todaro, a crypto analyst at Needham, emphasized that a significant weekly buying demand is essential for a significant price increase. He told CNBC:
Bitcoins overall market cap is very large now, at $1.2 trillion, and there is considerable liquidity. While there is a lot of buying volume, there are also a lot of sellers.
Recent data from CryptoQuant also reveals a shift in Bitcoin ETF activity. After net selling 5,000 BTC on September 2, Bitcoin ETFs net purchased 7,000 BTC by the end of September, marking the highest daily purchase since July 21.
Analysts believe that if this upward trend continues, it could help drive Bitcoin prices higher as the year progresses. Moreover, the fourth quarters of previous Halving cycles have historically been promising for BTC, with surges of 9%, 59% and 171% in 2012, 2016 and 2020 respectively.
Interest Rate Cuts And Global Tensions
Several factors have contributed to the current volatile price action, and there is hope for a further recovery for the leading digital asset. As highlighted by CNBC, the stock market has hit new highs, and both US presidential candidates have commented positively about cryptocurrencies.
Furthermore, the Federal Reserves (Fed) decision to cut interest rates on September 18 and a series of rate cuts announced by Chinas central bank have created an environment that could be favorable for Bitcoin.
While Bitcoin appears poised for a bullish fourth quarter, it still faces challenges, including a supply overhang stemming from US and German government actions and impending repayments to creditors from the Mt. Gox exchange.
In addition, CNBC claims that many traders are taking a wait-and-see approach to the outcome of the upcoming US presidential election, which will take place in less than two months, and there are rising tensions in the Middle East between Israel and Iran.
At the time of writing, BTC has climbed above the $62,380 mark, gaining 2.6% in the last 24 hours.
Featured image from DALL-E, chart from TradingView.com
Text source: NewsBTC
