As a seasoned crypto investor with over a decade of experience navigating the volatile digital asset market, I have learned to appreciate Bitcoin’s resilience and potential more than ever. The recent surge past $95,000, despite the turbulence in traditional markets like US government bonds, is a testament to Bitcoin’s unique appeal as a hard, censorship-resistant monetary asset.
On November 26th, Bitcoin (BTC) managed to regain the $95,000 threshold following a brief dip below $91,000. This two-day surge, amounting to approximately 5%, signified a breakaway from traditional financial markets, notably US government bonds. In stark contrast to the preceding week, Bitcoin’s price previously mirrored the fluctuations in the U.S. 2-year Treasury note yields.
If investors are shifting their view of Bitcoin from a high-risk asset to one with strong monetary policies and censorship resistance, it becomes more probable that the price could reach $100,000 before the end of the year. With several major economies experiencing growth difficulties, it’s expected that investors will turn towards scarce assets like Bitcoin, which may boost its value.
On November 28th, the interest rate on French government bonds, which represent the second-largest economy within the Eurozone, climbed up to 3%, aligning with Greece’s bond yields. This data suggests that there is a significant level of worry regarding political instability in France as the government faces difficulties in obtaining backing for their 2025 budget that aims to reduce spending, as reported by CNBC.
In 2024, it’s expected that France’s budget shortfall will expand to roughly 6.1%, surpassing the European Union’s stipulated maximum of 3% by a significant margin.
Russia, one of the world’s major economic heavyweights, witnessed its national currency, the ruble, plummet to a level not seen since March 2022, leading the central bank to take action. Despite inflation climbing to 8.5% in October, as reported by CNBC, President Vladimir Putin downplayed worries. The central bank has boosted interest rates to 21%, but has yet to effectively address ongoing price hikes.
Bitcoin ETF inflows and miner accumulation boost bullish outlook
On November 27th, positive inflows into U.S. spot Bitcoin exchange-traded funds (ETFs) contributed to an improvement in investor confidence, effectively ending a two-day slump in sentiment.
The $103 million net inflow was primarily directed into Fidelity’s FBTC and Bitwise’s BITB, while BlackRock’s leading IBIT fund remained flat. This marked a significant turnaround from the previous $548 million in outflows on Nov. 25 and Nov. 26.
Bitcoin miners’ transfers concluded a ten-day period showing typical outflows, as indicated by Glassnode data, and saw growing deposits into addresses controlled by miners. Although unconfirmed, this trend has positively influenced the overall market mood.
Generally speaking, when miners accumulate Bitcoin, it usually shows they’re confident about the continuing growth of the market. On the other hand, selling often stirs up unnecessary apprehension, doubt, and fear (FUD). To give some perspective, the daily miner revenue is currently around 476 Bitcoins, which means roughly 30% could be withdrawn to cover costs.
According to Bernstein Research’s projection, MicroStrategy is expected to own about 4% of the entire Bitcoin supply by the year 2033, alleviating worries over the company’s high price tag compared to its Bitcoin reserves. At present, they possess an impressive 331,200 Bitcoins in their treasury and intend to carry on with their strategy, which includes taking on more debt and selling stocks.
The potential journey of Bitcoin reaching $100,000 is influenced significantly by the reactions of the U.S. economy and the dollar to prevailing macroeconomic circumstances. Nevertheless, on-chain data and institutional backing continue to exhibit resilience, suggesting a strong bullish trend that might thrust BTC towards record-breaking heights.
This piece serves primarily as a source of information, not as legal or financial guidance. It’s crucial to remember that the perspectives, ideas, and opinions shared within this article belong solely to the author and may not align with those held by CryptoMoon.
Read More
- GBP EUR PREDICTION
- SEI PREDICTION. SEI cryptocurrency
- TRB PREDICTION. TRB cryptocurrency
- HBAR PREDICTION. HBAR cryptocurrency
- CNY RUB PREDICTION
- POL PREDICTION. POL cryptocurrency
- INJ PREDICTION. INJ cryptocurrency
- RLC PREDICTION. RLC cryptocurrency
- CTXC PREDICTION. CTXC cryptocurrency
- OKB PREDICTION. OKB cryptocurrency
2024-11-28 21:01